Building Communities Enriching Lives
Transcription
Building Communities Enriching Lives
JOHOR LAND BERHAD JohorLand Laporan Tahunan 2006 Annual Report BERHAD 12379-K (12379-K) Laporan Tahunan 2006 10th Floor, KOMTAR, Jalan Wong Ah Fook, 80000 Johor Bahru, Johor, Malaysia. Tel: 07-227 2692 Fax: 07-226 2962 Annual Report www.jland.com.my Building Communities Enriching Lives building communities, enriching lives J Land, with over three decades of experience has grown to be a dominant player in the property sector. Through the creation of carefully planned neighbourhoods and communities complemented with complete infrastructure and modern amenities, JLand has elevated the quality of living for many, besides raising the investment values for both homeowners and shareholders alike. J Land is not just about building communities, it’s about enriching lives. JOHOR LAND BERHAD (12379-K) corporate vision v i s i k o r p o r a t to be the leading property company menjadi syarikat peneraju di sektor hartanah corporate profile Johor Land Berhad (JLand) is a successful property developer listed on the Main Board of Bursa Malaysia Securities Berhad with a strong track record of building thriving communities in Johor going back to 1972. One of its key achievements is the development of residential neighbourhoods in the Township of Pasir Gudang. JLand’s long term commitment to sustainable development and its ability to respond to the needs of the local market has made JLand a dominant property developer in Johor. This commitment and this ability is made possible through understanding homeowners’ need for quality and functionality. Our success is in giving our customers value for their money and assets with potential for appreciation. The company currently has a prime land bank of over 3,000 acres in Johor. In its endeavour to be a premier property company in the country, it intends to expand its presence throughout Malaysia and the region and to widen its involvement in other sectors of the property industry. JLand is prepared to develop viable parcels of land in areas outside its present area of operation and to participate in acquiring, developing and owning investment properties. p r o f i l k o r p o r a t Johor Land Berhad (JLand) merupakan pemaju hartanah berjaya yang disenaraikan di Papan Utama Bursa Malaysia Securities Berhad dan mempunyai rekod pencapaian yang kukuh dalam membangunkan komuniti yang berkembang di Johor sejak tahun 1972. Salah satu pencapaian utamanya adalah pembangunan kediaman perjiranan di Perbandaran Pasir Gudang. Komitmen jangka panjang JLand untuk pembangunan yang berterusan dan keupayaannya bertindak balas terhadap keperluan pasaran tempatan menjadikan JLand sebuah pemaju hartanah yang terutama di Johor. Komitmen dan keupayaan ini tercapai melalui kefahaman terhadap kehendak pemilik kediaman untuk kualiti dan fungsi kediaman. Kejayaan kami adalah dalam memberi pulangan nilai wang dan potensi peningkatan nilai aset kepada pelangganpelanggan kami. Syarikat kini mempunyai lebih dari 3,000 ekar simpanan tanah utama di Johor. Dalam usahanya untuk menjadi syarikat hartanah yang unggul di negara ini, JLand berhasrat untuk memperluaskan aktivitinya ke seluruh Malaysia dan rantau ini serta memperluaskan penglibatannya dalam sektor-sektor lain dalam industri hartanah. JLand bersedia untuk membangunkan tanah-tanah yang berdaya maju di luar kawasan operasi sedia ada dan untuk melibatkan diri dalam mengambil alih, membangun dan memiliki pelaburan hartanahnya sendiri. 2 Johor Land Berhad laporan tahunan 2006 annual report 27/02/2006 Declaration of interim dividend for financial year 2005 Peng isytiharan dividen interim bag i t ahun kewangan 2005 28/02/2006 Quarterly report on consolidated results for the financial period ended 31/12/2005 Laporan suku tahun kewangan yang disatukan bagi tempoh berakhir 31/12/2005 31/03/2006 Date of entitlement for interim dividend 2005 Tarikh kelayakan menerima dividen interim 2005 12/04/2006 Declaration of final dividend for financial year 2005 Pengisytiharan dividen akhir bagi tahun kewangan 2005 21/04/2006 Date of payment of interim dividend for financial year 2005 Tarikh bayaran dividen interim bagi tahun kewangan 2005 24/04/2006 Notice of 31st Annual General Meeting and Extraordinary General Meeting Notis Mesyuarat Agung Tahunan kali ke-31 dan Mesyuarat Agung Luarbiasa 24/05/2006 31st Annual General Meeting & Extraordinary General Meeting Mesyuarat Agung Tahunan kali ke-31 & Mesyuarat Agung Luarbiasa 24/05/2006 Quarterly report on consolidated results for the financial period ended 31/03/2006 Laporan suku tahun kewangan yang disatukan bagi tempoh berakhir 31/03/2006 contents kandungan mukasurat 2 Corporate Vision Visi Korporat 2 Corporate Profile Profil Korporat 3 2006 Financial Calendar Kalendar Kewangan 2006 4 Corporate Information Maklumat Korporat 6 Board of Directors Lembaga Pengarah 8 Profile of the Board of Directors Profil Lembaga Pengarah 18 Corporate Structure Struktur Korporat 19 Teraju Committee Jawatankuasa Teraju 20 STATEMENT TO SHAREHOLDERS PENYATA KEPADA PARA PEMEGANG SAHAM 02/06/2006 Date of entitlement for final dividend 2005 Tarikh kelayakan menerima dividen akhir 2005 34 30/06/2006 Date of payment of final dividend for financial year 2005 Tarikh bayaran dividen akhir bagi tahun kewangan 2005 2006 Corporate Diary Diari Korporat 2006 36 Audit Committee Report Quarterly report on consolidated results for the financial period ended 30/06/2006 Laporan suku tahun kewangan yang disatukan bagi tempoh berakhir 30/06/2006 39 Statement on Corporate Governance 44 Statement on Internal Control 47 Statement on Directors’ Responsibility 48 Additional Disclosure Information 50 FINANCIAL STATEMENTS 93 Location of Land Bank and Projects 94 List of Properties Shareholdings Statistics 29/08/2006 03/11/2006 27/11/2006 Declaration of interim dividend for financial year 2006 Peng isytiharan dividen interim bag i t ahun kewangan 2006 Quarterly report on consolidated results for the financial period ended 30/09/2006 Laporan suku tahun kewangan yang disatukan bagi tempoh berakhir 30/09/2006 07/12/2006 Date of entitlement for interim dividend 2006 Tarikh kelayakan menerima dividen interim 2006 99 21/12/2006 Date of payment of interim dividend for financial year 2006 Tarikh bayaran dividen interim bagi tahun kewangan 2006 101 Notice of Annual General Meeting 103 Notis Mesyuarat Agung Tahunan 2006 financial calendar 105 Statement Accompanying The Notice of Annual General Meeting 106 Penyata Bersama Notis Mesyuarat Agung Tahunan 107 Corporate Directory Proxy Form Borang Proksi kalendar kewangan 2006 Johor Land Berhad 2006 annual report laporan tahunan 3 corporate information m a k l u m a t k o r p o r a t Board of Directors / Lembaga Pengarah TAN SRI DATO’ MUHAMMAD ALI HASHIM MAHLIL BIN OMAR Chairman / Pengerusi Independent Non Executive Director Pengarah Bebas Bukan Eksekutif Non Independent Non Executive Chairman Pengerusi Bukan Bebas Bukan Eksekutif ■ LUKMAN BIN HJ ABU BAKAR MOHD TALHAR BIN ABDUL RAHMAN ■ Deputy Chairman / Timbalan Pengerusi Non Independent Non Executive Director Pengarah Bukan Bebas Bukan Eksekutif Non Independent Non Executive Deputy Chairman Timbalan Pengerusi Bukan Bebas Bukan Eksekutif ABDUL MALEK BIN TALIB A.F.M SHAFIQUL HAFIZ Non Independent Executive Director Pengarah Bukan Bebas Eksekutif Managing Director / Pengarah Urusan YUSOF BIN RAHMAT KUA HWEE SIM ■ Independent Non Executive Director Pengarah Bebas Bukan Eksekutif Non Independent Non Executive Director Pengarah Bukan Bebas Bukan Eksekutif DATO HJ HASSAN BIN HJ MOHD YUNOS Independent Non Executive Director Pengarah Bebas Bukan Eksekutif ■ Audit Committee Jawatankuasa Audit Company Secretaries / Setiausaha-setiausaha Syarikat Jamalludin Bin Kalam LS 02710 4 Johor Land Berhad laporan tahunan 2006 annual report Idham Jihadi Bin Abu Bakar ACIS (MAICSA 7007381) maklumat korporat REGISTERED OFFICE PEJABAT BERDAFTAR STOCK EXCHANGE LISTING PENYENARAIAN BURSA SAHAM 13th Floor Menara Johor Corporation KOTARAYA, 80000 Johor Bahru Johor, Malaysia Tel : 07-223 2692 Fax / Faks : 07-223 3175 Main Board of Bursa Malaysia Securities Berhad Papan Utama Bursa Malaysia Securities Berhad AUDITORS JURUAUDIT KPMG SHARE REGISTRAR PENDAFTAR SAHAM PRINCIPAL BANKERS BANK-BANK UTAMA Pro-Corporate Management Services Sdn. Bhd. (Company No. 349501-M) Suite 2, 17th Floor Kompleks Tun Abdul Razak Jalan Wong Ah Fook 80000 Johor Bahru, Johor Tel : 07-222 5044 Fax / Faks : 07-222 3044 E-mail : [email protected] Malayan Banking Berhad Bank Muamalat Malaysia Berhad Johor Land Berhad 2006 annual report laporan tahunan 5 board of LE M BAGA 6 directors PE NGARAH Johor Land Berhad laporan tahunan 2006 annual report lembaga pengarah Standing from left to right / Berdiri dari kiri ke kanan: Yusof Bin Rahmat Mahlil Bin Omar Dato Hj Hassan Bin Hj Mohd Yunos A.F.M Shafiqul Hafiz Managing Director / Pengarah Urusan Tan Sri Dato’ Muhammad Ali Hashim Chairman / Pengerusi Kua Hwee Sim Lukman Bin Hj Abu Bakar Abdul Malek Bin Talib Mohd Talhar Bin Abdul Rahman Deputy Chairman / Timbalan Pengerusi Johor Land Berhad 2006 annual report laporan tahunan 7 profile of the board of directors profil lembaga pengarah Tan Sri Dato’ Muhammad Ali Hashim Chairman / Pengerusi Tan Sri Dato’ Muhammad Ali Hashim, aged 60, a Malaysian, is a Non Independent Non Executive Director and the Chairman of JLand. Tan Sri was appointed to the Board on 1 January 2006. Tan Sri is the Group Chief Executive of Johor Corporation (JCorp), the ultimate holding corporation of JLand, since January 1982. He graduated from the University of Malaya with a Bachelor of Economics (Honours) degree in 1969 and participated in the Senior Executive Programme, Stanford University USA, in 1985. Tan Sri was conferred the Honorary Doctor of Management by Universiti Teknologi Malaysia on 19 August 2000. Tan Sri’s tenacity, entrepreneurial verve and visionary leadership has built JCorp into a leading Malaysian conglomerate involved in several business sectors such as Palm Oils and Oleochemicals, Quick Service Restaurants, Healthcare, Property and Hotels and Intrapreneur Venture. JCorp has successfully managed Malaysia’s first ‘privatised’ local authority, namely the Pasir Gudang Local Authority (PGLA), with Tan Sri as President since January 1982. JCorp was the single most important agency responsible for Pasir Gudang’s development into one of Malaysia’s most vibrant industrial townships. PGLA made history by becoming the first business-driven Local Authority in Malaysia to issue a Mudharabah Bond rated triple ‘A’ by Ratings Agency Malaysia (RAM). JCorp, under the leadership of Tan Sri, has won many awards, including the prestigious Inaugural Prime Minister’s Quality Awards for Public Sector in 1990. Tan Sri was recognised as Entrepreneur of the Year by Rotary Club of Johor Bahru in 1994 and Director of the Year for 1995 by the Malaysian Institute of Directors for his commitment towards quality, entrepreneurial effort and corporate professionalism. He was also named as Property CEO of the Year 2005 by the International Real Estate Federation (FIABCI – Malaysia) and awarded the World Halal Forum Best Corporate Social Responsibility Program Award 2006 from YAB Dato’ Seri Abdullah Hj Ahmad Badawi, Prime Minister of Malaysia on 8 May 2006. Recently he was awarded the prestigious Maal Hijrah 1428H Appreciation Award by Duli Yang Maha Mulia Seri Paduka Baginda Yang DiPertuan Agong on 20 January 2007. 8 Johor Land Berhad laporan tahunan 2006 annual report profil lembaga pengarah Tan Sri also sits as Chairman of QSR Brands Bhd, KFC Holdings (Malaysia) Bhd, KPJ Healthcare Berhad, Kulim (Malaysia) Berhad and Sindora Berhad, which are JCorp’s subsidiaries listed on the Main Board of the Bursa Malaysia Securities Berhad. Tan Sri also sits as Chairman of Damansara Realty Berhad, an Associate of JCorp listed on the Main Board of the Bursa Malaysia Securities Berhad. Tan Sri is also active as Council Member of Malaysian Industrial Development Authority (MIDA), President of Johor Football Association, President of Malaysian Kite Council, Vice President of Malaysian Islamic Chamber of Commerce (MICC), Chairman of Corporate Bureau of MICC and Chairman of Kumpulan Waqaf An-Nur Berhad, a charit able institution extending healthcare services to the poor and the needy. He is also Chairman and/or Director of several other companies. Tan Sri Dato’ Muhammad Ali has written several books on business and management entitled ‘Membujur Lalu ...’ in 1996, ‘Bisnes Satu Cabang Jihad’ in 2003 and ‘Pengisian Agenda Ekonomi Di Bawah Konsep Islam Hadhari: Menjadikan Bisnes Satu Cabang Jihad’ in 2004. The book ‘Bisnes Satu Cabang Jihad’ has been translated into Bahasa Indonesia. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of JLand. He has no personal interest in any business arrangement involving JLand. He has not been convicted for any offence and has attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2006. Tan Sri Dato’ Muhammad Ali Hashim, berusia 60 tahun, warganegara Malaysia, merupakan Pengarah Bukan Bebas Bukan Eksekutif dan Pengerusi JLand. Tan Sri telah dilantik ke Lembaga Pengarah pada 1 Januari 2006. Tan Sri adalah Ketua Eksekutif Kumpulan Johor Corporation (JCorp), perbadanan induk JLand, sejak Januari 1982. Beliau memperolehi Ijazah Sarjana Muda Ekonomi (Kepujian) daripada Universiti Malaya pada 1969 dan telah menyertai Program Eksekutif Kanan, Stanford University, USA pada tahun 1985. Tan Sri telah dianugerahkan Doktor Kehormat Pengurusan oleh Universiti Teknologi Malaysia pada 19 Ogos 2000. Berkeperibadian gigih dan cekal, tinggi semangat keusahawanan serta berdaya kepimpinan berwawasan, Tan Sri telah membina JCorp sehingga menjadi sebuah konglomerat Malaysia yang unggul yang terlibat di dalam pelbagai sektor bisnes seperti Minyak Sawit dan Oleokimia, Restoran Makanan Segera, Prisihatin, Hartanah dan Hotel dan ‘Intrapreneur Venture’. JCorp telah berjaya menguruskan pihak berkuasa tempatan yang pertama di Malaysia yang diurus berteraskan prinsip swasta iaitu Pihak Berkuasa Tempatan Pasir Gudang (PBT Pasir Gudang). Tan Sri bertanggungjawab selaku Presiden PBT Pasir Gudang sejak Januari 1982. JCorp merupakan agensi utama yang bertanggungjawab ke atas pembangunan Pasir Gudang sehingga berjaya dimajukan menjadi sebuah bandar perindustrian yang unggul. PBT Pasir Gudang telah menempa sejarah dengan menjadi Pihak Berkuasa Tempatan di Malaysia yang pertama menerbitkan Bon Mudharabah dengan penarafan tiga ‘A’ oleh Ratings Agency Malaysia (RAM). JCorp, di bawah kepimpinan Tan Sri telah berjaya merangkul banyak anugerah termasuk Anugerah Kualiti Perdana Menteri untuk Sektor Awam pada tahun 1990. Tan Sri telah menerima Anugerah Usahawan Tahunan Terbaik oleh Kelab Rotary, Johor Bahru pada tahun 1994 dan Pengarah Tahunan Terbaik pada tahun 1995 oleh Institut Pengarah Malaysia bagi menghargai komitmen serta profesionalisma beliau terhadap kualiti pengurusan dan keusahawanan. Beliau juga telah menerima Anugerah Ketua Eksekutif Hartanah bagi tahun 2005 oleh International Real Estate Federation (FIABCI-Malaysia) dan Anugerah Korporat Terbaik Program Kemasyarakatan (CSR) di Majlis Forum Halal Sedunia 2006 yang disampaikan oleh YAB Dato’ Seri Abdullah Hj Ahmad Badawi, Perdana Menteri Malaysia pada 8 Mei 2006. Baru-baru ini, beliau telah dikurniakan Anugerah Penghargaan Maal Hijrah 1428H oleh Duli Yang Maha Mulia Seri Paduka Baginda Yang DiPertuan Agong pada 20 Januari 2007. Tan Sri juga adalah Pengerusi QSR Brands Bhd, KFC Holdings (Malaysia) Bhd, KPJ Healthcare Berhad, Kulim (Malaysia) Berhad dan Sindora Berhad, kesemuanya syarikatsyarikat di dalam Kumpulan JCorp yang tersenarai di Papan Utama Bursa Malaysia Securities Berhad. Tan Sri juga adalah Pengerusi Damansara Realty Berhad, Syarikat Bersekutu JCorp yang tersenarai di Papan Utama Bursa Malaysia Securities Berhad. Tan Sri juga aktif sebagai Ahli Majlis Lembaga Pembangunan Industri Malaysia (MIDA), Presiden Persatuan Bolasepak Johor, Presiden Majlis Pelayang Malaysia, Naib Presiden Dewan Perdagangan Islam Malaysia (DPIM), Pengerusi Biro Korporat DPIM dan Pengerusi Kumpulan Waqaf An-Nur Berhad, sebuah institusi kebajikan yang menyediakan rawatan perubatan kepada mereka yang kurang berkemampuan dan yang memerlukan. Beliau juga menjadi Pengerusi dan/atau Pengarah di dalam beberapa buah syarikat lain. Tan Sri Dato’ Muhammad Ali juga telah menulis beberapa buah buku bisnes dan pengurusan bertajuk ‘Membujur Lalu …’ pada tahun 1996, ‘Bisnes Satu Cabang Jihad’ pada tahun 2003 dan ‘Pengisian Agenda Ekonomi Di Bawah Konsep Islam Hadhari: Menjadikan Bisnes Satu Cabang Jihad’ pada tahun 2004. Buku ‘Bisnes Satu Cabang Jihad’ telah diterjemahkan ke dalam Bahasa Indonesia. Selain daripada yang telah dimaklumkan, beliau tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama JLand Beliau juga tidak mempunyai sebarang kepentingan peribadi di dalam sebarang urusan perniagaan yang melibatkan JLand. Beliau tidak pernah dijatuhkan hukuman atas sebarang kesalahan dan telah menghadiri kesemua empat (4) Mesyuarat Lembaga Pengarah Syarikat bagi tahun kewangan berakhir 31 Disember 2006. Johor Land Berhad 2006 annual report laporan tahunan 9 profile of the board of directors Mohd Talhar Bin Abdul Rahman Deputy Chairman / Timbalan Pengerusi Mohd Talhar Bin Abdul Rahman, aged 67, a Malaysian, is a Non Independent Non Executive Director and also the Deputy Chairman of JLand. He was appointed as a Director of JLand on 15 April 1996. On 1 February 2001, he was appointed as the Chairman and with effect from 1 January 2006, he resigned as the Chairman and was re-appointed as the Deputy Chairman on 6 January 2006. He is a Chartered Surveyor by profession and was made a Fellow of the Royal Institution of Chartered Surveyors in 1973. He is also a Fellow of the Institution of Surveyors (Malaysia) in 1985. He served in both the State and Malaysian Civil Services; in the Local Government and Housing Department, Johor from 1964 to 1967, and as Director of Valuation in the Ministry of Finance from 1968 to 1972. In 1974, he co-founded C H Williams Talhar & Wong (WTW), a Valuation and Property Consultancy Firm and became the Group Chairman of WTW since 1982. He sits on the Board of Courts Mammoth Berhad, a company listed on the Bursa Malaysia Securities Berhad and also a Director of Pelaburan Johor Berhad, a public company. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of JLand. He has no personal interest in any business arrangement involving JLand. He has not been convicted for any offence and has attended two (2) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2006. Currently, he owns 7,920 units of ordinary shares of JLand. Mohd Talhar Bin Abdul Rahman, berusia 67 tahun, warganegara Malaysia, merupakan Pengarah Bukan Bebas Bukan Eksekutif dan juga sebagai Timbalan Pengerusi JLand. Beliau telah dilantik sebagai Pengarah JLand pada 15 April 1996. Pada 1 Februari 2001, beliau telah dilantik sebagai Pengerusi dan berkuatkuasa daripada 1 Januari 2006, beliau meletakkan jawatan sebagai Pengerusi dan dilantik semula sebagai Timbalan Pengerusi pada 6 Januari 2006. Beliau ialah seorang “Chartered Surveyor” dan telah menjadi “Fellow of the Royal Institution of Chartered Surveyor” pada tahun 1973. Beliau juga merupakan “Fellow of the Institution of Surveyors” (Malaysia) pada tahun 1985. Beliau telah berkhidmat di Perkhidmatan Awam Peringkat Negeri dan Malaysia; di Jabatan Perumahan dan Kerajaan Tempatan, Johor dari tahun 1964 hingga 1967 dan sebagai Pengarah Penilaian di Kementerian Kewangan dari tahun 1968 hingga 1972. Pada tahun 1974, beliau telah bersama-sama menubuhkan C H Williams Talhar & Wong (WTW), sebuah Firma Penilaian dan Perunding Hartanah dan menjadi Pengerusi Kumpulan WTW sejak tahun 1982. Beliau adalah Ahli Lembaga Pengarah Courts Mammoth Berhad, sebuah syarikat yang tersenarai di Bursa Malaysia Securities Berhad dan juga Pengarah Pelaburan Johor Berhad, sebuah syarikat awam. Selain daripada yang dimaklumkan, beliau tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama JLand. Beliau juga tidak mempunyai kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan JLand. Beliau juga tidak pernah dijatuhkan hukuman atas sebarang kesalahan dan telah menghadiri dua (2) Mesyuarat Lembaga Pengarah Syarikat bagi tahun kewangan berakhir pada 31 Disember 2006. Pada masa ini, beliau memegang sebanyak 7,920 unit saham JLand. 10 Johor Land Berhad laporan tahunan 2006 annual report profil lembaga pengarah A.F.M Shafiqul Hafiz Managing Director / Pengarah Urusan A.F.M Shafiqul Hafiz, aged 60, a Bangladeshi and Malaysian Permanent Resident, was appointed to the Board and as Managing Director of JLand since 1 May 1988. Mr Shafiqul graduated with a Bachelor of Science Degree majoring in Civil Engineering from East Pakistan University of Engineering and Technology, Dhaka in 1967. He also holds a Master of Science Degree in Civil Engineering from Middle East Technical University of Ankara, Turkey which he obtained in 1971. He is also registered with the Institute of Engineers, Australia, as a Chartered Professional Engineer. In 1992, he attended a Senior Management Program on Public Enterprise at Harvard, USA. He has been a National Council Member of International Real Estate Federation (FIABCI) Malaysian Chapter since 2000. He has also been elected as Vice President by FIABCI International for its Asia Pacific Regional Committee for the term 2007 till 2009. He began his career as an Engineer in Dhaka, East Pakistan in 1968. His career in Malaysia dates back to 1974 when he joined Public Works Department of Malaysia as a Project Engineer. Later he joined Johor Corporation in 1983 and has held various positions within the Group before being appointed as the Managing Director of JLand in 1988 and as the Chief Executive of the Property Development Division of Johor Corporation since 1991. He is Chairman of Puteri Hotels Sdn. Bhd. and its Group of hotels as well as Chairman of TPM Technopark Sdn. Bhd. He is also Chairman and Director of several other companies within the Johor Corporation Group. Beliau memulakan kerjayanya sebagai Jurutera di Dhaka, Pakistan Timur pada tahun 1968. Kerjaya beliau di Malaysia bermula sejak tahun 1974 apabila beliau menyertai Jabatan Kerja Raya Malaysia sebagai Jurutera Projek. Beliau kemudian telah berkhidmat dengan Johor Corporation pada tahun 1983 dan telah memegang pelbagai jawatan di dalam Kumpulan sebelum dilantik sebagai Pengarah Urusan JLand pada tahun 1988 dan sebagai Ketua Eksekutif Bahagian Pembangunan Hartanah, Johor Corporation sejak tahun 1991. Beliau adalah Pengerusi Puteri Hotels Sdn. Bhd. dan hotelhotel dalam Kumpulannya serta Pengerusi TPM Technopark Sdn. Bhd. Beliau juga adalah Pengerusi dan Pengarah di beberapa buah syarikat dalam Kumpulan Johor Corporation. Selain dari yang dimaklumkan, beliau tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama JLand. Beliau juga tidak mempunyai kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan JLand. Beliau juga tidak pernah dijatuhkan hukuman atas sebarang kesalahan dan telah menghadiri kesemua (4) Mesyuarat Lembaga Pengarah Syarikat bagi tahun kewangan berakhir pada 31 Disember 2006. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of JLand. He has no personal interest in any business arrangement involving JLand. He has not been convicted for any offence and has attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2006. A.F.M Shafiqul Hafiz, berusia 60 tahun, warganegara Bangladesh dengan taraf Penduduk Tetap Malaysia, telah dilantik ke Lembaga Pengarah dan sebagai Pengarah Urusan JLand sejak 1 Mei 1988. En. Shafiqul memiliki Ijazah Sarjana Muda Sains dengan pengkhususan dalam Kejuruteraan Awam dari East Pakistan University of Engineering and Technology, Dhaka pada tahun 1967. Beliau juga memegang Ijazah Sarjana Sains dengan pengkhususan dalam Kejuruteraan Awam dari Middle East Technical University of Ankara, Turki yang telah diperolehinya pada tahun 1971. Beliau juga berdaftar dengan “Institute of Engineers” Australia sebagai “Chartered Professional Engineer”. Pada tahun 1992, beliau telah menghadiri Program Pengurusan Atasan mengenai Perusahaan Awam di Harvard, AS. Beliau adalah Ahli Majlis Kebangsaan “International Real Estate Federation” (FIABCI ) Bahagian Malaysia sejak tahun 2000. Beliau juga telah dipilih sebagai Timbalan Presiden oleh FIABCI Antarabangsa untuk Jawatankuasa Rantau Asia Pacific bagi tempoh 2007 hingga tahun 2009. Johor Land Berhad 2006 annual report laporan tahunan 11 profile of the board of directors Kua Hwee Sim Director / Pengarah Kua Hwee Sim, aged 54, a Malaysian, is an Independent Non Executive Director. She was first appointed to the Board of JLand on 1 May 1996. She is also the Chairman of the Audit Committee. She is a Fellow of the Association of Chartered Certified Accountant, United Kingdom and a Registered Accountant of Malaysia and Singapore. She has more than thirty years of corporate and financial experience in several industries within Malaysia and overseas. She is currently a Director of QSR Brands Bhd and KFC Holdings (Malaysia) Bhd, as well as a Director of Kulim (Malaysia) Berhad and Sindora Berhad which are Johor Corporation’s subsidiaries listed on the Main Board of the Bursa Malaysia Securities Berhad. She is also the Chairman of Audit Committee of QSR Brands Bhd and KFC Holdings (Malaysia) Bhd and a member of the Audit Committee of Kulim (Malaysia) Berhad and Sindora Berhad. As a professional Accountant, she also provides financial training for companies within Malaysia. Other than as disclosed, she does not have any family relationship with any director and/or major shareholder of JLand. She has no personal interest in any business arrangement involving JLand. She has not been convicted for any offence and has attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2006. Kua Hwee Sim, berusia 54 tahun, warganegara Malaysia, merupakan Pengarah Bebas Bukan Eksekutif. Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 1 Mei 1996. Beliau juga adalah Pengerusi Jawatankuasa Audit. Beliau menjadi “Fellow of the Association of Chartered Certified Accountant”, United Kingdom dan merupakan seorang Akauntan Berdaftar di Malaysia dan Singapura. Beliau memiliki pengalaman melebihi 30 tahun di bidang korporat dan kewangan di dalam pelbagai industri di Malaysia dan luar negara. Beliau kini adalah Pengarah QSR Brands Bhd dan KFC Holdings (Malaysia) Bhd, juga Pengarah Kulim (Malaysia) Berhad dan Sindora Berhad yang merupakan syarikat-syarikat anak Johor Corporation yang tersenarai di Papan Utama Bursa Malaysia Securities Berhad. Beliau juga adalah Pengerusi Jawatankuasa Audit QSR Brands Bhd dan KFC Holdings (Malaysia) Bhd dan Ahli Jawatankuasa Audit Kulim (Malaysia) Berhad dan Sindora Berhad. Sebagai Akauntan profesional, beliau juga memberikan latihan kewangan kepada syarikat-syarikat di Malaysia. Selain daripada yang dimaklumkan, beliau tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama JLand. Beliau juga tidak mempunyai kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan JLand. Beliau juga tidak pernah dijatuhkan hukuman atas sebarang kesalahan dan telah menghadiri kesemua empat (4) Mesyuarat Lembaga Pengarah Syarikat bagi tahun kewangan berakhir pada 31 Disember 2006. 12 Johor Land Berhad laporan tahunan 2006 annual report profil lembaga pengarah Dato Hj Hassan Bin Hj Mohd Yunos Director / Pengarah Dato Hj Hassan Bin Hj Mohd Yunos, aged 71, a Malaysian, is an Independent Non Executive Director. He was appointed to the Board of JLand on 1 August 2005. Dato Hj Hassan is a Barristerat-Law from Lincoln’s Inn and was called to the Malaysian Bar in 1965. He had served in the Malaysian Judicial and Legal Services for several years. Currently he is in legal practice, a senior partner of the firm of Hassan Yunos & Co. He is principally in corporate and real property and was involved at inception and in the early stages of the development of Johor Corporation. Selain daripada yang dimaklumkan, beliau tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama JLand. Beliau juga tidak mempunyai kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan JLand. Beliau juga tidak pernah dijatuhkan hukuman atas sebarang kesalahan dan telah menghadiri tiga (3) Mesyuarat Lembaga Pengarah Syarikat bagi tahun kewangan berakhir pada 31 Disember 2006. Pada masa ini, beliau tidak memegang apa-apa saham JLand. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of JLand. He has no personal interest in any business arrangement involving JLand. He has not been convicted for any offence and has attended three (3) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2006. Currently, he does not own any shares of JLand. Dato Hj Hassan Bin Hj Mohd Yunos, berusia 71 tahun, warganegara Malaysia, merupakan Pengarah Bebas Bukan Eksekutif. Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 1 Ogos 2005. Dato Hj Hassan merupakan Barrister-at-Law daripada Lincoln’s Inn dan diterima serta diperakui sebagai Peguambela dan Peguamcara Malaysia pada tahun 1965. Beliau pernah berkhidmat di Badan Kehakiman dan Perkhidmatan Perundangan selama beberapa tahun. Kini, beliau terlibat dalam bidang guaman dan merupakan Rakan Kongsi Kanan di firma Hassan Yunos & Co. Beliau terlibat dalam bidang korporat dan hartanah dan turut terlibat dalam pembangunan Johor Corporation di awal penubuhannya. Johor Land Berhad 2006 annual report laporan tahunan 13 profile of the board of directors Mahlil Bin Omar Director / Pengarah Mahlil Bin Omar, aged 61, a Malaysian, is an Independent Non Executive Director. He was appointed to the Board of JLand on 3 July 2001. He is also a member of the Audit Committee. He holds a Diploma in Estate Management from the Willesden College of Technology, London. He is a Fellow of The Institution of Surveyors, Malaysia and also a Registered Valuer & Estate Agent with the Board of Valuers, Appraisers and Estate Agents, Malaysia. He commenced his career in 1973 as a Valuer/ Property Manager at The Urban Development Authority (UDA). From 1975 to 1977, he was the General Manager of Tampoi New Town Development, Johor Bahru. He was then appointed as a Director of the Property Division, UDA from 1977 to 1981. From 1982 to 1988, he was a Director/Partner of Rahim & Co. Chartered Surveyors Sdn. Bhd. He was appointed as the Managing Director of Harta Consult Sdn. Bhd. in 1988. From 1989 to 1997, he was the General Manager and later the Managing Director of Petronas Hartabina Sdn. Bhd. From 1997 to 2000, he was the Managing Director of KLCC Urusharta Sdn. Bhd. In 2003, he was appointed as a Director and the Chairman of Harta Consult Sdn. Bhd. as well as a Director and the Chairman of Damansara Harta Management Sdn. Bhd. From October 2001 to December 2006, he was an Independent Non Executive Director of AmProperty Trust Management Berhad, the Managers of AmFirst Property Trust. AmFirst Property Trust is no longer listed on the Main Board of the Bursa Malaysia Securities Berhad. It is now replaced by AmFIRST REIT. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of JLand. He has no personal interest in any business arrangement involving JLand. He has not been convicted for any offence and has attended all four (4) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2006. Mahlil Bin Omar, berusia 61 tahun, warganegara Malaysia, merupakan Pengarah Bebas Bukan Eksekutif. Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 3 Julai 2001. Beliau juga adalah Ahli Jawatankuasa Audit. Beliau memiliki Diploma Pengurusan Hartanah dari Willesden College of Technology, London. Beliau merupakan seorang “Fellow of The Institution of Surveyors” Malaysia dan juga seorang Penilai Berdaftar dan Ejen Hartanah dengan “Board of Valuers, Appraisers and Estate Agents” Malaysia. Beliau memulakan kerjayanya pada tahun 1973 sebagai Penilai/Pengurus Hartanah di Urban Development Authority (UDA). Bermula dari tahun 1975 hingga 1977, beliau merupakan Pengurus Besar Tampoi New Town Development, Johor Bahru. Beliau kemudian telah dilantik sebagai Pengarah Bahagian Hartanah UDA dari tahun 1977 hingga 1981. Dari tahun 1982 hingga 1988, beliau merupakan Pengarah/ Rakan Kongsi Rahim & Co. Chartered Surveyors Sdn. Bhd. Beliau dilantik sebagai Pengarah Urusan Harta Consult Sdn. Bhd. pada tahun 1988. Dari tahun 1989 hingga 1997, beliau adalah Pengurus Besar dan kemudiannya Pengarah Urusan Petronas Hartabina Sdn. Bhd. Dari tahun 1997 hingga 2000, beliau merupakan Pengarah Urusan KLCC Urusharta Sdn. Bhd. Pada tahun 2003, beliau telah dilantik sebagai Pengarah dan Pengerusi Harta Consult Sdn. Bhd. dan juga sebagai Pengarah dan Pengerusi Damansara Harta Management Sdn. Bhd. Dari Oktober 2001 hingga Disember 2006, beliau adalah Pengarah Bebas Bukan Eksekutif di AmProperty Trust Management Berhad, Syarikat Pengurus AmFirst Property Trust. AmFirst Property Trust tidak lagi tersenarai di Papan Utama Bursa Malaysia Securities Berhad. Ianya kini digantikan oleh AmFIRST REIT. Selain daripada yang dimaklumkan, beliau tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama JLand. Beliau juga tidak mempunyai kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan JLand. Beliau juga tidak pernah dijatuhkan hukuman atas sebarang kesalahan dan telah menghadiri kesemua empat (4) Mesyuarat Lembaga Pengarah Syarikat bagi tahun kewangan berakhir pada 31 Disember 2006. 14 Johor Land Berhad laporan tahunan 2006 annual report profil lembaga pengarah Lukman Bin Hj Abu Bakar Director / Pengarah Lukman Bin Hj Abu Bakar, aged 47, a Malaysian, is a Non Independent Non Executive Director. He was appointed to the Board of JLand on 1 August 2006. He is also a member of the Audit Committee. He graduated with a Bachelor of Urban and Regional Planning from the University of Technology Malaysia in 1982. He also holds a Post Graduate Diploma (Housing, Building and Planning) from Institute for Housing Studies, Rotterdam Holland. He commenced his career in 1982 as a Town Planning Officer of Johor Corporation. In 1988, he served as the same position at Pasir Gudang Local Authority. He was the Deputy Manager of Johor Corporation in the year of 1989. Then, he was appointed as a Manager as well as the Deputy Secretary of Pasir Gudang Local Authority in 1992. Later he served Sindora Berhad, a subsidiary company of Johor Corporation as General Manager in 1995. Currently he is the Secretary of Pasir Gudang Local Authority and also a Senior General Manager at Johor Corporation. He also sits as a Director of Damansara Realty Berhad, which is a JCorp’s subsidiary listed on the Main Board of Bursa Malaysia Securities Berhad and as a Director of Syarikat Pengangkutan Maju Berhad and Penawar Ekspress Line Berhad, other public companies within the Johor Corporation Group. He also currently sits on the board of several other companies within the Johor Corporation Group. JCorp yang tersenarai di Papan Utama Bursa Malaysia Securities Berhad dan sebagai Pengarah Syarikat Pengangkutan Maju Berhad dan Penawar Ekspress Line Berhad, syarikat-syarikat awam dalam Kumpulan Johor Corporation. Beliau juga kini merupakan Pengarah dalam beberapa syarikat lain dalam Kumpulan Johor Corporation. Selain daripada yang dimaklumkan, beliau tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama JLand. Beliau juga tidak mempunyai kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan JLand. Beliau juga tidak pernah dijatuhkan hukuman atas sebarang kesalahan dan telah menghadiri dua (2) Mesyuarat Lembaga Pengarah Syarikat bagi tahun kewangan berakhir pada 31 Disember 2006. Pada masa ini, beliau tidak memegang apa-apa saham JLand. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of JLand. He has no personal interest in any business arrangement involving JLand. He has not been convicted for any offence and has attended two (2) Board of Directors’ Meetings of the Company in the financial year ended 31 December 2006. Currently, he does not own any shares of JLand. Lukman Bin Hj Abu Bakar, berusia 47 tahun, warganegara Malaysia, merupakan Pengarah Bukan Bebas Bukan Eksekutif. Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 1 Ogos 2006. Beliau juga merupakan Ahli Jawatankuasa Audit. Beliau berkelulusan Ijazah Sarjana Muda Perancang Bandar dan Wilayah dari Universiti Teknologi Malaysia pada tahun 1982. Beliau juga memiliki Diploma Lepasan Ijazah (Perancang dan Pembinaan, Perumahan) daripada Institute for Housing Studies, Rotterdam Holland. Beliau memulakan kerjayanya pada tahun 1982 sebagai Pegawai Perancang Bandar, Johor Corporation. Pada tahun 1988, beliau memegang jawatan yang sama di Pihak Berkuasa Tempatan Pasir Gudang. Beliau merupakan Timbalan Pengurus di Johor Corporation pada tahun 1989. Beliau kemudiannya dilantik sebagai Pengurus dan juga sebagai Timbalan Setiausaha, Pihak Berkuasa Tempatan Pasir Gudang pada tahun 1992. Beliau turut berkhidmat di Sindora Berhad, sebuah syarikat dalam Kumpulan Johor Corporation sebagai Pengurus Besar pada tahun 1995. Kini beliau adalah Setiausaha Pihak Berkuasa Tempatan Pasir Gudang dan Pengurus Besar Kanan di Johor Corporation. Beliau juga adalah Pengarah Damansara Realty Berhad, sebuah syarikat anak Johor Land Berhad 2006 annual report laporan tahunan 15 profile of the board of directors Abdul Malek Bin Talib Director / Pengarah Abdul Malek Bin Talib, aged 44, a Malaysian, is an Executive Director of JLand. He was appointed to the Board of JLand on 1 January 2007. He is an engineer by profession and obtained his Bachelor of Science majoring in Civil Engineering from the Michigan State University, USA. He also holds a Master in Business Administration from Henley Management College, London. He commenced his career as a Civil Engineer in the Technical Department prior to his appointment as the Secretary of the Executive Committee of Johor Corporation. Later, he was transferred to JCorp subsidiary companies and held managerial positions in Pembinaan Prefab Sdn. Bhd. and in JLand. In 2004, he was promoted to his current position as the Chief Operating Officer. He is also the Chairman and Director of several other companies within the Johor Corporation Group. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of JLand. He has no personal interest in any business arrangement involving JLand. He has not been convicted for any offence. Currently, he does not own any shares of JLand. Abdul Malek Bin Talib, berusia 44 tahun, warganegara Malaysia, merupakan Pengarah Eksekutif JLand. Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 1 Januari 2007. Beliau merupakan “engineer by profession” dan memperolehi Ijazah Sarjana Muda Sains dengan pengkhususan dalam Kejuruteraan Awam daripada Michigan State University, USA. Beliau juga memiliki Sarjana dalam Pengurusan Perniagaan daripada Henley Management College, London. Beliau memulakan kerjayanya sebagai Jurutera Awam di Jabatan Teknikal sebelum dilantik sebagai Setiausaha Jawatankuasa Eksekutif Johor Corporation. Beliau kemudiannya ditempatkan ke syarikat anak JCorp dan memegang jawatan-jawatan pengurusan di Pembinaan Prefab Sdn. Bhd dan di JLand. Pada 2004, beliau dilantik ke jawatan terkini sebagai Ketua Pegawai Operasi. Beliau juga adalah Pengerusi dan Pengarah di beberapa buah syarikat dalam Kumpulan Johor Corporation. Selain daripada yang dimaklumkan, beliau tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama JLand. Beliau juga tidak mempunyai kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan JLand. Beliau tidak pernah dijatuhkan hukuman atas sebarang kesalahan. Pada masa ini, beliau tidak memegang apa-apa saham JLand. 16 Johor Land Berhad laporan tahunan 2006 annual report profil lembaga pengarah Yusof Bin Rahmat Director / Pengarah Yusof Bin Rahmat, aged 49, a Malaysian, is a Non Independent Non Executive Director. He was appointed to the Board of JLand on 1 January 2007. He graduated with Bachelor of Civil Engineering (Honours) from the University of Sheffielld, United Kingdom in 1980 before joining Johor Corporation in the same year. He has held various positions in subsidiary companies within the Corporation. In January 1997, he was appointed as the Chief Executive of the Project Development Divison, Johor Corporation. He was appointed as the Managing Director of TPM Technopark Sdn. Bhd., a company within the Johor Corporation Group since January 2002. Selain daripada yang dimaklumkan, beliau tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama JLand. Beliau juga tidak mempunyai kepentingan peribadi dalam sebarang urusan perniagaan yang melibatkan JLand. Beliau juga tidak pernah dijatuhkan hukuman atas sebarang kesalahan. Pada masa ini, beliau tidak memegang apa-apa saham JLand. Other than as disclosed, he does not have any family relationship with any director and/or major shareholder of JLand. He has no personal interest in any business arrangement involving JLand. He has not been convicted for any offence. Currently, he does not own any shares of JLand. Yusof Bin Rahmat, berusia 49 tahun, warganegara Malaysia, merupakan Pengarah Bukan Bebas Bukan Eksekutif. Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 1 Januari 2007. Beliau memiliki Ijazah Sarjana Muda Kepujian dalam Kejuruteraan Awam daripada University of Sheffielld, United Kingdom pada tahun 1980 sebelum berkhidmat dengan Johor Corporation pada tahun yang sama. Beliau memegang pelbagai jawatan dalam syarikat-syarikat anak dalam Perbadanan. Pada Januari 1997, beliau dilantik sebagai Ketua Eksekutif, Bahagian Pembangunan Projek, Johor Corporation. Beliau dilantik sebagai Pengarah Urusan TPM Technopark Sdn. Bhd., sebuah syarikat dalam Kumpulan Johor Corporation sejak Januari 2002. Johor Land Berhad 2006 annual report laporan tahunan 17 corporate structure s t r u k t u r k o r p o r a t JOHOR LAND BERHAD (12379-K) Property Development, Construction, Property Investment and Investment Holding Pembangunan Hartanah, Pembinaan, Pelaburan Hartanah dan Pegangan Pelaburan 100% 100% Advance Development Sdn Bhd (13974-A) Pembinaan Prefab Sdn Bhd (30936-A) Property Development Pembangunan Hartanah Construction Pembinaan 75% 18 30.07% Johor Land Manufacturing Sdn Bhd (301430-D) Revertex (Malaysia) Sdn Bhd (13437-V) Manufacturer of Metal Door and Window Frames Pengeluar Kerangka Pintu dan Tingkap Besi Manufacturer of Specialty Latex Concentrate and Industrial Chemicals Pengeluar Pati Susu Getah Asli dan Bahan Kimia Industri Johor Land Berhad laporan tahunan 2006 annual report 2 3 4 5 6 7 1 4 7 1 1 2 3 A.F.M SHAFIQUL HAFIZ Managing Director/Pengarah Urusan 5 ABDUL MALEK BIN TALIB Chief Operating Officer/Ketua Pegawai Operasi 6 SETH BIN JAMALUDDIN Deputy General Manager, Marketing Division Timbalan Pengurus Besar, Bahagian Pemasaran 7 NORFAZAHAH BINTI AHMAD Deputy General Manager, Managing Director’s Office Timbalan Pengurus Besar, Pejabat Pengarah Urusan MOHD RAZIF BIN AB. RAHIM General Manager, Tebrau Division Pengurus Besar, Bahagian Tebrau SHEIKH BAHNAN BIN SHEIKH BAKIR Deputy General Manager, Contract Department Timbalan Pengurus Besar, Jabatan Kontrak MARIANA BINTI SIDI Senior General Manager (Finance) Pengurus Besar Kanan (Kewangan) 4 8 8 FADZILAH BINTI MOHD OTHMAN Manager, Administration and Human Resource Department Pengurus, Jabatan Pentadbiran dan Sumber Manusia teraju committee j a w a t a n k u a s a t e r a j u Johor Land Berhad 2006 annual report laporan tahunan 19 20 Johor Land Berhad laporan tahunan 2006 annual report Dear Shareholders, On behalf of the Board of Directors, it is our great pleasure to present the Annual R eport and Financial St atements of Johor Land Berhad (J Land) for the financial year ended 31 December 2006 (F Y 2006). Para Pemegang Saham, Bag i pihak Lembaga Pengarah, k ami dengan suk acit anya membent angk an Laporan Tahunan dan P enyat a K ewangan Johor Land Berhad (J Land) bag i t ahun kewangan berakhir 31 Disember 2006 (TK 2006). statement to shareholders penyata kepada para pemegang saham Johor Land Berhad 2006 annual report laporan tahunan 21 Amidst this slew of unwelcome news, JLand continued to demonstrate its resilience, thanks largely to proactive and innovative strategies put in place. In a year that saw a general easing of the Johor property market, JLand has endeavoured to ride out the cyclical downturn with a multi-pronged strategy. 98 99 00 74.7 72.4 62.4 88.8 97 40.0 45.9 51.9 The year under review was a challenging one for JLand. Reflecting the nationwide trend, the property market in Johor was less robust in 2006 compared with the previous year. Intense competition with the entry of new players and property overhang in certain areas proved formidable challenges. Mother nature also dealt a heavy hand, inundating parts of Johor with the proverbial 100-year floods towards the end of the year. We wish to point out, however, that the floods had no major direct impact on Johor’s property market. All of JLand’s current property development projects remained unscathed, although our hearts go out to the many thousands affected by the floods. 38.3 BUSINESS OVERVIEW 108.4 111.3 statement to shareholders 01 02 03 04 05 06 Group Revenue RM million Perolehan Kumpulan RM juta We focus to adopt the right property mix and competitive pricing in all our projects. Our sales promotion teams continue to participate aggressively in marketing and promotional activities. JLand also continue to pursue intensifying research to gain better understanding of the market needs. This will also ensure that we meet not only property needs but also achieve customer satisfaction and prevent mismatch of supply and demand. FINANCIAL PERFORMANCE In 2006, the growth in the Malaysian economy strengthened to 5.9% compared with 5.2% recorded in 2005. Based on the report on Malaysian Economy 2006 by Bank Negara, the construction sector registered a contraction of 0.5% in 2006 compared with 1.6% in 2005. However, activities in the residential sub-sector moderated amidst rising costs of building materials and transportation. In Johor, the year also witnessed a general slowdown in the primary housing market with a fewer number of new units launched and a moderation in sales performance. Having anticipated and factored in the general slowdown in the property market, the Group’s financial performance for the period ended 31 December 2006 has largely met expectations. For the year, revenue dipped by 15.9% to RM74.66 million from RM88.78 million achieved previously, due largely to a reduction in property sales. Accordingly, profit before tax decreased marginally to RM22.10 million compared to RM22.26 million posted in 2005. Notwithstanding reduced sales, property development remained by far the biggest contributor to Group turnover with ongoing projects in Taman Bukit Dahlia and Taman Bukit Tiram providing a steady stream of recurring revenue. The quality of JLand’s balance sheet remains fundamentally strong. Among key financial performance indicators, net tangible assets grew to RM639.96 million in 2006, against RM631.98 million recorded the previous year. Basic earnings per share also increased to RM14.66, up 7.24% from RM13.67 a year ago. DIVIDENDS JLand’s rise to prominence as the leading property company in the south is due in large part to the support and loyalty of shareholders. As a show of appreciation, the Board of Directors is pleased to recommend a final dividend of 3% gross (less Malaysian income tax at 27%) in respect of the financial year ended 31 December 2006, subject to the approval of shareholders at the forthcoming Annual General Meeting, in addition to the 4% interim dividend for the same year which was paid on 21 December 2006. 22 Johor Land Berhad laporan tahunan 2006 annual report penyata kepada para pemegang saham TINJAUAN PERNIAGAAN Tahun di bawah kajian merupakan satu tahun yang mencabar bagi JLand. Seperti arah aliran pasaran hartanah seluruh negara, pasaran hartanah di Johor menunjukkan prestasi yang kurang memberangsangkan pada tahun 2006 berbanding pada tahun sebelumnya. Persaingan hebat berikutan kemasukan syarikat-syarikat baru ke dalam pasaran dan lebihan bekalan hartanah di beberapa kawasan nyata memberi cabaran yang besar. Bencana alam juga merupakan dugaan yang mencabar apabila Johor dilanda banjir terburuk dalam tempoh 100 tahun menjelang penghujung tahun. Walau bagaimanapun, kami ingin memaklumkan bahawa banjir tersebut tidak memberikan kesan yang besar kepada pasaran hartanah Johor. Walaupun semua projek pembangunan hartanah semasa JLand tidak terjejas, namun kami bersimpati dengan nasib beribu-ribu mangsa yang ditimpa bencana tersebut. Sungguhpun berhadapan dengan bencana yang tidak diduga ini, JLand terus memperlihatkan keteguhannya, sebahagian besarnya hasil daripada strategi proaktif dan inovatif yang telah diatur. Dalam tempoh satu tahun yang menyaksikan kelembapan pasaran hartanah di Johor, JLand telah berusaha gigih mengatasi kemerosotan untuk keluar daripada kitaran menurun tersebut dengan merangka pelbagai strategi. Kami memberi tumpuan untuk menyediakan hartanah bercampur yang tepat dan menawarkan harga yang kompetitif untuk semua projek kami. Pasukan promosi jualan kami meneruskan penglibatan secara agresif dalam aktiviti-aktiviti pemasaran dan promosi yang dijalankan. JLand juga terus melaksanakan penyelidikan terperinci untuk mendapatkan pemahaman yang lebih tepat tentang keperluan pasaran. Langkah ini bukan sahaja memastikan kami memenuhi keperluan hartanah tetapi juga mencapai kepuasan pelanggan dan mengelakkan ketidakseimbangan antara penawaran dan permintaan. PRESTASI KEWANGAN Pada tahun 2006, perkembangan ekonomi Malaysia mencatat pertumbuhan sebanyak 5.9% berbanding 5.2% yang dicatatkan pada tahun 2005. Berdasarkan laporan Ekonomi Malaysia 2006 oleh Bank Negara, sektor pembinaan mencatatkan penguncupan sebanyak 0.5% pada tahun 2006 berbanding 1.6% pada tahun 2005. Walau bagaimanapun, aktiviti-aktiviti sub-sektor kediaman mencatat pertumbuhan sederhana walaupun berhadapan dengan kenaikan kos bahan binaan dan pengangkutan. Di Johor, pada tahun di bawah kajian juga menyaksikan kelembapan dalam pasaran perumahan utama dengan pengurangan bilangan unit-unit baru yang dilancarkan dan mencatat prestasi jualan yang sederhana. Setelah mengambilkira kelembapan di pasaran hartanah, prestasi kewangan Kumpulan bagi tempoh berakhir 31 Disember 2006 telah berjaya memenuhi jangkaan. Pada tahun di bawah kajian, perolehan menurun sebanyak 15.9% kepada RM74.66 juta daripada RM88.78 juta yang dicapai sebelumnya, sebahagian besarnya akibat pengurangan jualan hartanah. Sehubungan itu, keuntungan sebelum cukai mencatat penurunan kecil kepada RM22.10 juta berbanding RM22.26 juta yang diperolehi pada tahun 2005. Walaupun jualan berkurangan, pembangunan hartanah kekal sebagai penyumbang terbesar kepada perolehan Kumpulan di mana beberapa projek-projek yang sedang dijalankan di Taman Bukit Dahlia dan Taman Bukit Tiram berupaya menyediakan aliran perolehan yang mantap. Pada dasarnya, kualiti lembaran imbangan JLand kekal kukuh. Antara petunjuk prestasi kewangan yang penting adalah peningkatan aset ketara bersih kepada RM639.96 juta pada tahun 2006, berbanding RM631.98 juta yang dicatatkan pada tahun sebelumnya. Pendapatan asas sesaham juga meningkat kepada RM14.66, sebanyak 7.24% berbanding RM13.67 setahun yang lalu. DIVIDEN Kebangkitan JLand sebagai peneraju syarikat hartanah yang terkemuka di selatan sebahagian besarnya adalah disebabkan oleh sokongan dan kesetiaan padu yang ditunjukkan oleh para pemegang saham. Sebagai penghargaan, Lembaga Pengarah dengan berbesar hati mencadangkan dividen akhir sebanyak 3% kasar (ditolak 27% cukai pendapatan Malaysia) bagi tahun kewangan berakhir 31 Disember 2006, tertakluk kepada kelulusan para pemegang saham di Mesyuarat Agung Tahunan yang akan datang, sebagai tambahan kepada dividen interim sebanyak 4% bagi tahun yang sama dibayar pada 21 Disember 2006. Johor Land Berhad 2006 annual report laporan tahunan 23 statement to shareholders CORPORATE DEVELOPMENTS During the year under review, on 28 December 2006 JLand entered into a Development Agreement with Johor Corporation to acquire Nusa Mutiara Complex with land area of 24.70 acres and 2 vacant freehold land with total area of 15.59 acres located adjacent to Bandar Dato’ Onn. JLand will pay JCorp a total cash consideration of RM33.0 million for the rights to develop the three parcels, the largest of which will include the Nusa Mutiara Complex. The future development of these lands are expected to provide JLand with an added income stream while Nusa Mutiara Complex is expected to provide synergistic benefits and complement the development of Bandar Dato’ Onn. The decision to go ahead with this project will be subject to the approval of shareholders at the upcoming Extraordinary General Meeting. OPERATIONAL HIGHLIGHTS 22.1 22.3 18.6 9.6 9.2 3.2 10.1 17.4 26.1 36.2 CORE BUSINESS – PROPERTY DEVELOPMENT In our core property development business, what distinguishes us from the competition stems from a basic tenet of our operating philosophy. We go the extra mile for our customers. Thus, whereas many others build houses, we build homes. Now that others are emulating us in building communities, we go one step further by enriching lives. 97 98 99 00 01 02 03 04 05 06 Group Profit Before Taxation RM million Keuntungan Sebelum Cukai Kumpulan RM juta Starting out with unbeatable prime locations, we proceed to build attractive, lively and thriving neighbourhoods. Architecturally distinctive and designed with a theme concept, our properties are well known for their quality finishes. Tasteful landscaping exploiting to the fullest natural contours of the environment creates the right ambience and conditions for conducive living. As the final touch, we provide an array of amenities such as mosques, playgrounds, schools, sports and other recreational facilities. All these come together seamlessly towards building a sense of community, and ultimately enrich the lives of our many customers who call a JLand property home. PASIR GUDANG DIVISION Taman Bukit Dahlia Located on a 417-acre parcel of land, Taman Bukit Dahlia is strategically located between Masai and Pasir Gudang, one of Johor’s growth corridors. When completed by the end of 2009, the mixed development project will consist of 4,200 units of terraced and semi-detached houses, bungalows and commercial complexes. Taman Bukit Dahlia is in the vicinity of a multitude of amenities that include the scenic Tasik Perdana, schools, polytechnic, police station, hospitals, banks, hypermarkets, racing tracks, sports stadium and Bukit Layang-Layang, the venue for the Annual International Kite Festival. All these amenities will no doubt add value and quality to the lives of the residents of this prime development. In March 2006, Certificates of Fitness (CFO) were issued for 126 units of double storey Pristine Dahlia (Phase 1) terraced houses, 120 units of double storey Serene Dahlia (Phase 1) terraced houses and 60 units of double storey Perdana Dahlia (Phase 1) semi-detached houses. Given the softening market conditions, the take-up rate for these properties particularly the semi-detached units, has been very impressive. To date, only five Perdana Dahlia units have remained unsold. 24 Johor Land Berhad laporan tahunan 2006 annual report penyata kepada para pemegang saham PERKEMBANGAN KORPORAT Pada tahun di bawah kajian, 28 Disember 2006, JLand telah menandat angani Perjanjian Pembangunan dengan Johor Corporation untuk mengambilalih Kompleks Nusa Mutiara dengan keluasan 24.70 ekar dan 2 bidang tanah kosong berpegangan bebas dengan keluasan 15.59 ekar yang terletak bersebelahan dengan Bandar Dato’ Onn. JLand akan membuat pembayaran tunai berjumlah RM33.0 juta kepada JCorp berhubung kebenaran untuk membangunkan tiga bidang tanah di mana pembangunan terbesar akan meliputi Kompleks Nusa Mutiara. Pembangunan tanah-tanah ini pada masa depan dijangka memberikan aliran pendapatan tambahan kepada JLand sementara Kompleks Nusa Mutiara dijangka memberikan manfaat sinergi dan pelengkap kepada pembangunan Bandar Dato’ Onn. Keputusan untuk meneruskan projek ini tertakluk kepada kelulusan para pemegang saham pada Mesyuarat Agung Luar Biasa akan datang. TINJAUAN OPERASI BISNES TERAS - PEMBANGUNAN HARTANAH Dalam bisnes teras pembangunan hartanah kami, apa yang membezakan kami dengan para pesaing adalah prinsip asas falsafah operasi kami. Kami menyediakan perkhidmatan melebihi jangkaan pelanggan. Para pesaing kami mendirikan rumah, tetapi kami membina kediaman. Kini, mereka mencontohi kami dalam membina komuniti tetapi kami telah melangkah lebih jauh dengan memperkayakan kehidupan. Bermula dengan lokasi bertaraf perdana yang tiada tandingnya, kami terus gigih membina kawasan perjiranan yang menarik, segar dan berkembang maju. Senibina tersendiri dan direkabentuk dengan konsep bertema, hart anah k ami dikenali kerana kemasannya yang berkualiti. Seni taman yang indah disesuaikan dengan kontor semulajadi sepenuhnya mewujudkan suasana damai, sesuai untuk kehidupan yang menceriak an. Bag i melengkapkan kehidupan di sini, kami menyediakan beberapa kemudahan seperti masjid-masjid, taman-taman permainan, sekolah-sekolah, kemudahan sukan dan rekreasi. Semuanya ini digabungkan dengan sempurna untuk membina sebuah komuniti yang unggul dan akhirnya menyumbang ke arah memperkayakan kehidupan para pelanggan kami yang menamakan hartanah JLand sebagai kediaman mereka. BAHAGIAN PASIR GUDANG Taman Bukit Dahlia Dibina di atas tanah seluas 417 ekar, Taman Bukit Dahlia terletak di lokasi strategik antara Masai dan Pasir Gudang, salah sebuah koridor pertumbuhan Johor. Apabila siap pada penghujung tahun 2009, projek pembangunan bercampur ini akan mengandungi 4,200 unit rumah teres dan berkembar, banglo serta kompleks komersil. Taman Bukit Dahlia terletak di persekitaran yang dilengkapi dengan pelbagai kemudahan yang merangkumi Tasik Perdana yang berpemandangan indah, sekolah-sekolah, politeknik, balai polis, hospital, bank, pasaraya besar, litar perlumbaan, stadium sukan dan Bukit Layang-Layang, iaitu lokasi tapak Festival Layang-layang Antarabangsa Tahunan. Semua kemudahan ini pasti menambah nilai dan kualiti kehidupan penduduk di kawasan pembangunan bertaraf perdana ini. Pada bulan Mac 2006, Sijil Kelayakan Menduduki (CFO) telah dikeluarkan untuk 126 unit rumah teres dua tingkat Pristine Dahlia (Fasa 1), 120 unit rumah teres dua tingkat Serene Dahlia (Fasa 1) dan 60 unit rumah berkembar dua tingkat Perdana Dahlia (Fasa 1). Walaupun pasaran lembab, kadar pembelian hartanah ini terutamanya rumah berkembar amat menggalakkan. Sehingga kini, hanya lima unit Perdana Dahlia yang masih belum terjual. BAHAGIAN TIRAM Taman Bukit Tiram Syarikat subsidiari milik penuh kami, Advance Development Sdn. Bhd., kini sedang membangunkan Taman Bukit Tiram (Fasa 3), sebuah pembangunan bercampur yang mengandungi 511 unit hartanah, dibangunkan di atas tanah seluas 48 ekar. Dengan memanfaatkan reputasi hartanah JLand yang cemerlang, Taman Bukit Tiram kini semakin menjadi pilihan utama di kalangan pembeli. Di bawah Fasa 2, sejumlah 51 unit rumah teres dua tingkat Lily telah mendapat sambutan yang sangat baik. Di bawah Fasa 3, kami telah menyiapkan sebanyak 195 unit rumah teres dua tingkat Tulip dan 18 unit rumah teres dua tingkat Lavender yang dilancarkan pada bulan September 2005. Seperti kebiasaannya, jualan rumah-rumah tersebut dijangk a memberangsangkan apabila unit-unit rumah tersebut hampir siap. Johor Land Berhad 2006 annual report laporan tahunan 25 statement to shareholders TIRAM DIVISION Taman Bukit Tiram Our wholly-owned subsidiary, Advance Development Sdn. Bhd., is currently developing Taman Bukit Tiram (Phase 3), a mixed development consisting of 511 units of properties spread over 48 acres. Bearing all the hallmarks of a JLand property, Taman Bukit Tiram is rapidly becoming an address of choice among discerning buyers. Under Phase 2, 51 units of double storey Lily terraced houses were very well received. Under Phase 3, we have completed 195 units of double storey Tulip terraced houses and 18 units of double storey Lavender terraced houses that were launched in September 2005. As is the norm, sales of these houses are expected to pick up when they are closer to full completion. of 19 exclusive neighbourhoods have been planned amidst lush green surroundings and replete with an array of recreational facilities. Serving the township is a regional commercial hub and nerve centre covering 118 acres. The first phase development will consist of 652 double storey terraced and semi-detached houses with a GDV estimated at RM170 million. Some 181 units of double storey terraced houses with an estimated worth of RM40 million were offered for sale from 16 February 2007. Buyers have a choice of four types, with different built-up areas and land sizes. As a preview of things to come, the show houses have been completed and opened for public viewing. One of the most distinctive features of the township is the emphasis on green areas, with linear and recreational parks planned throughout. The renowned landscape designer Made Wijaya has been engaged to transform Bandar Dato’ Onn into a garden city. Bandar Tiram JLand’s other ongoing project in Ulu Tiram is Bandar Tiram, planned as a self-contained township on 1,200 acres of what was previously estate land. The master plan envisages a development of 12,300 units of residential and shop units clustered around a town-cumshopping centre. The entire project has a gross development value (GDV) of RM2.60 billion and a projected gross profit of RM800 million. This mammoth undertaking is being developed in stages, with final completion earmarked for the year 2020. Befitting a premier development, Bandar Dato’ Onn will have a myriad of amenities second to none. To this end, JLand has fully financed the construction of a RM25 million interchange dedicated to the township. Now opened for public use, residents have direct access to the North-South Expressway travelling to Johor Bahru or north to Kuala Lumpur without going through the congestion of local roads. The first phase of Bandar Tiram will see the development of 1,574 residential and commercial units and generate a GDV of RM200 million. It is expected to kick off in the fourth quarter of 2007 with the launch of 693 units of single storey terraced houses priced from RM138,000 upwards. Particularly with the proposed acquisition of the Nusa Mutiara Complex, JLand will be in a position to provide top notch recreational facilities with Olympic standard swimming pool and other facilities for the immediate use of future residents of Bandar Dato’ Onn. The other two parcels of vacant land could be developed into residential and commercial properties, further boosting property sales in Bandar Dato’ Onn. TEBRAU DIVISION Bandar Dato’ Onn Bandar Dato’ Onn is set to be the premier address in Johor Bahru, where the growing demand for prime properties in choice locations has remained strong. Planned for development over the next 10 to 15 years on 1,474 acres of freehold land, the new township is only 12 km away from the Johor Bahru City Centre. It is expected to generate gross sales and a gross profit of RM4.0 billion and RM1.20 billion respectively. In line with JLand’s philosophy of building communities and enriching lives, the township will be built based on a neighbourhood concept. A total Other Projects Undeniably, JLand’s strength as a property developer lies in its mega housing projects. However, we have also tested the market for other properties with projects such as the Teratai and Taman Selasih apartments and a retail bazaar complex, all of which were completely sold out. In responding to market demand for affordable housing, we will be launching towards the end of 2007, some 320 units of medium cost apartments at Taman Seroja located just 8 km away from Johor Bahru. 26 Johor Land Berhad laporan tahunan 2006 annual report 14.7 13.7 14.95 6.9 1.2 5.6 10.3 11.5 19.1 26.3 penyata kepada para pemegang saham 97 98 99 00 01 02 03 04 05 06 Group Basic Earning Per Share sen Pendapatan Asas Sesaham Kumpulan sen Bandar Tiram Projek lain yang sedang dijalankan oleh JLand di Ulu Tiram adalah Bandar Tiram, ianya dirancang sebagai perbandaran lengkap di atas tanah seluas 1,200 ekar yang dahulunya merupakan tanah ladang. Pelan induknya mensasarkan pembangunan 12,300 unit kediaman dan kedai dirangkumkan dalam bandar – merangkap pusat membeli belah. Keseluruhan projek mempunyai nilai pembangunan kasar (GDV) berjumlah RM2.6 bilion dan keuntungan kasar yang diramalkan berjumlah RM800 juta. Pelaksanaan projek besar ini dilakukan secara berperingkat, dengan penyiapan akhir menjelang tahun 2020. Fasa pertama Bandar Tiram melibatkan pembangunan sebanyak 1,574 unit kediaman dan komersil serta menjana GDV berjumlah RM200 juta. Ia dijangka akan dimulakan pada suku keempat tahun 2007 dengan pelancaran 693 unit rumah teres satu tingkat dengan harga daripada RM138,000 ke atas. BAHAGIAN TEBRAU Bandar Dato’ Onn Bandar Dato’ Onn dijangka akan menjadi lokasi bertaraf perdana di Johor Bahru, di mana permintaan yang semakin meningkat terhadap hartanah utama di lokasi pilihan kekal kukuh. Dirancang untuk dibangunkan dalam tempoh 10 hingga 15 tahun di atas tanah berpegangan bebas seluas 1,474 ekar, perbandaran baru ini terletak hanya 12 km sahaja dari Bandaraya Johor Bahru. Ia dijangka akan menjana RM4.0 bilion jualan kasar dan RM1.2 juta keuntungan kasar. Selari dengan falsafah JLand untuk membina komuniti dan memperkayakan kehidupan, perbandaran tersebut akan dibina berdasarkan konsep perjiranan. Sejumlah 19 perjiranan eksklusif telah dirancang di persekitaran hijau yang subur dan dilengkapkan dengan pelbagai kemudahan rekreasi. Sebuah hub komersil wilayah dan nadi pertumbuhan seluas 118 ekar akan menyediakan kemudahan kepada perbandaran ini. Fasa pertama pembangunan merangkumi 652 unit rumah teres dua tingkat dan rumah berkembar dengan jangkaan GDV berjumlah RM170 juta. Sebanyak 181 unit rumah teres dua tingkat bernilai lebih kurang RM40 juta telah ditawarkan untuk jualan bermula 16 Februari 2007. Pembeli mempunyai pilihan empat jenis rumah, dengan keluasan binaan dan saiz tanah yang berbeza. Sebagai rujukan awal terhadap corak kehidupan yang bakal dibangunkan pada masa depan kepada bakal pembeli, rumah-rumah contoh telah disiapkan dan dibuka untuk dilihat oleh orang ramai. Salah satu ciri yang sangat berbeza di perbandaran ini adalah penekanan yang diberikan terhadap kawasan hijau, dengan taman-taman linear dan rekreasi yang dirancang di seluruh kawasan perbandaran. Pereka seni taman terkenal, Made Wijaya telah ditugaskan untuk menukar Bandar Dato’ Onn menjadi sebuah bandar dalam taman. Bersesuaian dengan statusnya sebagai pembangunan bertaraf perdana, Bandar Dato’ Onn ak an mengandung i pelbagai kemudahan yang sukar ditandingi. Sehingga kini, JLand telah membiayai sepenuhnya pembinaan sebuah persimpangan bertingkat dengan kos berjumlah RM25 juta yang disediakan khusus untuk perbandaran tersebut. Kini ia telah dibuka untuk kegunaan awam bagi memudahkan akses kepada penduduk untuk terus ke Lebuhraya Utara-Selatan, sama ada untuk menuju ke Johor Bahru atau Kuala Lumpur di sebelah utara tanpa melalui kesesakan jalan-jalan biasa. Cadangan pengambilalihan Kompleks Nusa Mutiara khususnya, akan membolehkan JLand menyediakan kemudahan rekreasi bertaraf unggul kerana ia meliputi sebuah kolam renang bertaraf Olimpik dan pelbagai kemudahan lain bagi kegunaan penduduk Bandar Dato’ Onn di masa hadapan. Dua bidang tanah kosong lain akan turut dibangunkan menjadi hartanah kediaman dan komersil bagi melonjakkan lagi jualan hartanah di Bandar Dato’ Onn. Projek-Projek Lain Tidak dinafikan, kekuatan JLand sebagai pemaju hartanah terletak pada kemampuannya melaksanakan projek perumahan bertaraf mega. Walau bagaimanapun, kami juga telah mencuba pasaran ini dengan hartanah lain melalui projek-projek seperti pangsapuri Teratai dan Taman Selasih serta kompleks bazar runcit, yang kesemuanya telah habis dijual. Sebagai tindak balas terhadap permintaan pasaran untuk rumah mampu milik, pada penghujung tahun 2007, kami akan melancarkan sebanyak 320 unit pangsapuri kos sederhana di Taman Seroja yang terletak hanya 8 km dari Johor Bahru. Pada t ahun yang ditinjau, J Land memperolehi sejumlah RM655,269 daripada pendapatan sewa untuk unit-unit rumah pangsa yang dimilikinya di Taman Cendana dan Taman Kenanga serta unit-unit kedai pejabat di Taman Mawar, Cenderawasih, Tebrau Business Park dan Senai Commercial Park. Johor Land Berhad 2006 annual report laporan tahunan 27 statement to shareholders For the year in review, JLand derived a total of RM655,269 in rental income from flats it owns in Taman Cendana and Taman Kenanga and shop offices at Taman Mawar, Cenderawasih, Tebrau Business Park and Senai Commercial Park. OTHER BUSINESSES JLand holds a 30.7% stake in Revertex (Malaysia) Sdn. Bhd., one of the world’s largest producers of speciality natural rubber latex concentrates and industrial chemicals. For 2006, both revenue and profit before tax derived from the company’s operations improved to RM470.20 million and RM38.37 million respectively. We are also in the business of manufacturing metal door and window frames through our subsidiary, Johor Land Manufacturing Sdn. Bhd. DEVELOPING OUR HUMAN CAPITAL We depend on the knowledge, skills, expertise and experience of our human capital to achieve even more. At the same time, employees expect to be developed by employers and given the opportunity to rise to their fullest potential. This meeting of corporate and individual goals is a challenge that JLand takes very seriously and we have achieved this over the years through the creation of a dynamic corporate climate that releases people’s energies, through inculcating a robust intrapreneurial spirit among top managers and executives, as well as through continuous, lifelong training effort. In 2006, JLand invested RM241,500 on manpower training, a figure that represents 5.11% of total emoluments. We take pride in the fact that every employee received an average of 24 training hours during the year. Our training programmes are tailored towards the development of the employees’ hard and soft skills. Hard skills revolve around the operational and technical knowledge required to perform a job competently. On the other hand, soft skills address aspects of how individuals relate to others. Refresher courses, especially those pertaining to building specifications, were included in the training calendar to keep staff abreast of the latest developments in the industry. As a Group built on results, we reward high-achievers. While we set minimum entry requirements for the various levels, staff, especially those at the managerial group, are encouraged to pursue higher academic qualifications. Nonetheless, for outstanding performers who lack the paper qualifications, there are still opportunities for them to ascend the career ladder. Training is but one aspect of developing our human capital. Sports and recreation activities have become regular fixtures on our calendar of events. Away from the pressures of work, social events like these infuse a spirit of teamwork and camaraderie. 28 Johor Land Berhad laporan tahunan 2006 annual report penyata kepada para pemegang saham BISNES-BISNES LAIN JLand memiliki 30.7% kepentingan dalam Revertex (Malaysia) Sdn. Bhd., salah sebuah pengeluar pati susu getah asli dan bahan kimia industri terbesar di dunia. Bagi tahun 2006, perolehan daripada operasi syarikat tersebut meningkat kepada RM470.20 juta, manakala keuntungan sebelum cukainya pula meningkat kepada RM38.37 juta. Kami juga menjalankan perniagaan pengeluaran kerangka pintu dan tingkap besi melalui syarikat subsidiari kami, Johor Land Manufacturing Sdn. Bhd. PEMBANGUNAN TENAGA INSAN Kami bergantung kepada tahap pengetahuan, kemahiran, kepakaran dan pengalaman modal insan kami untuk mencapai matlamat yang lebih tinggi. Pada masa yang sama, anggota pekerja berharap untuk dibangunkan oleh majikan dan diberikan peluang bagi meningkatkan potensi mereka ke peringkat yang lebih baik. Pertembungan antara matlamat korporat dan individu merupakan cabaran yang diambil secara serius oleh JLand dan kami telah mencapai matlamat ini sepanjang beberapa tahun dengan mewujudkan suasana korporat dinamik yang mampu menjana keupayaan tenaga insan. Ini dicapai melalui pemupukan semangat keusahawanan yang mantap di kalangan pengurus atasan dan eksekutif serta melalui latihan berterusan sepanjang tempoh kerjaya anggota pekerja. Pada tahun 2006, JLand telah melaburkan sejumlah RM241,500 untuk latihan sumber manusia iaitu 5.11% daripada jumlah keseluruhan gaji. Kami berbangga kerana setiap anggota pekerja kami secara purata telah menerima sebanyak 24 jam latihan sepanjang tahun ini. Program latihan kami direka khusus ke arah pembangunan kemahiran pekerjaan dan kemahiran diri anggota pekerja. Kemahiran pekerjaan melibatkan pengetahuan operasi dan teknikal yang diperlukan untuk melaksanakan tugasan dengan cekap. Kemahiran diri pula mementingkan aspek bagaimana seseorang individu berhubung-kait dengan individu yang lain. Kursuskursus peningkatan kefahaman terutamanya yang berkaitan dengan spesifikasi bangunan, dimasukkan ke dalam kalendar latihan untuk memaklumkan anggota pekerja berhubung perkembangan terkini dalam industri. Sebagai sebuah Kumpulan yang dibina berasaskan kepada penghasilan prestasi, anggota pekerja yang menghasilkan kualiti kerja cemerlang akan diberi penghargaan. Di samping menetapkan keperluan kemasukan minimum bagi pelbagai peringkat jawatan, anggota pekerja terutamanya di peringkat pengurusan, digalakkan agar meningkatkan kelayakan akademik ke peringkat yang lebih tinggi. Pada masa yang sama, anggota pekerja yang cemerlang tetapi kurang kelayakan akademik, mereka tetap disediakan peluang untuk meningkatkan tahap kerjaya masing-masing. Latihan merupakan salah satu aspek yang dapat membangunkan modal insan. Namun, aktiviti sukan dan rekreasi juga merupakan aktiviti yang turut dirangka dalam kalendar acara kami. Bertujuan untuk meredakan tekanan kerja, acaraacara sosial seperti ini berupaya menyemai semangat kerja berpasukan dan saling membantu antara satu sama lain. Johor Land Berhad 2006 annual report laporan tahunan 29 statement to shareholders IN PURSUIT OF QUALITY EXCELLENCE J Land’s pursuit of quality excellence and integrating quality into its corporate culture is manifested in many forms. One means at our disposal has been reg istration to the internationally recognized ISO quality system. This has been supplemented by various other quality improvement initiatives such as the Innovative Creative Circle (ICC) and Employees’ Suggestion Scheme (ESS). The ICC and ESS serve as important platforms for empowering our employees and the great majority enthusiastically participates in generating new ideas and suggestions. The most compelling suggestions are reviewed by TE R A J U Committee est ablished at Johor Corporation (JCorp), the ultimate holding corporation for Group-wide benchmarking and possible implementation. Our ICC teams have gone on to prove themselves on so many occasions at the Groupwide and national levels. For the seventh consecutive year, JLand floored the competition at JCorp’s annual Group-wide Quality Convention, retaining the coveted ‘Anugerah Mekar’ trophy as overall champion. Our top teams then moved on to reprise their success, clinching Three Gold Star Awards at the 2006 National ICC Convention. JLand’s pursuit of quality excellence has been extended to cover the performance of third party contractors and suppliers. Stringent evaluations are carried out internally to ensure that the contractors and consultants are up to par. In addition, all our contractors must be registered with the Construction Industry Development Board (CIDB) and their personnel issued with the CIDB Green Card. SHARING OUR SUCCESS Even as JLand has grown and prospered, we have always taken care to ensure that our success is inclusive. From early days, we have put in place a corporate social responsibility (CSR) programme sharing our success with the needy and supporting many charitable organisations and worthy causes. In 2006, JLand expended close to RM0.5 million in its CSR programme, which included a sizeable donation to various orphanages. We also contributed towards various causes such as ‘Tijarah Ramadhan’ and the Pasir Gudang Community Charity Fund, which in turn, has used the money to help the poor and needy. To ease the plight of the flood victims, we also lent our support to the Flood Relief Fund under the banner of JCorp. As in previous years, we were one of the main sponsors for the International Kite Festival, an annual event that has become one of Johor’s landmark tourist attractions. The lasting testimony of our CSR efforts must certainly be ‘Tunas Bistari’, an Entrepreneurs Development Programme organised by JCorp in collaboration with the Education Department of Johor. Launched in 1992 and opened to secondary school students throughout Johor, the programme’s objective is to nurture an entrepreneurial spirit among students by providing them an opportunity to gain first-hand experience in the real business world. Over the years, 11,148 students from 143 schools have benefited from the programme. LOOKING AHEAD – THE ISKANDAR DEVELOPMENT REGION For the coming FY 2007, the Malaysian economy is expected to sustain economic growth at a slightly higher pace of 6%, underpinned by an expansion of private sector activities. Analysts remain neutral about the state of the property market in Johor. However, we are optimistic that the abolishment of the real property gains tax and relaxation of the ruling on property purchases by foreigners will inject greater interest in the property sector. Demand would also be sustained by the attractive credit terms offered by banks, growing number and affluence of young working population, and increasing urban migration. One of the most important initiatives outlined in the Ninth Malaysia Plan (9MP) that has a bearing on JLand’s operations is the identification of the Iskandar Development Region (IDR) as the focus area for development in the southern region. Major development projects identified under the IDR master plan are expected to transform South Johor into a mega-hub. The IDR area covers JLand’s three major land banks located at Pasir Gudang, Ulu Tiram and Johor Bahru. When the infrastructural projects in the IDR take off as planned, they will no doubt have a positive impact on our properties, strengthened by the flow of investments from across the causeway. 30 Johor Land Berhad laporan tahunan 2006 annual report penyata kepada para pemegang saham MENCIPTA KECEMERLANGAN KUALITI Usaha mencipta kecemerlangan dan memasukkan kualiti ke dalam budaya korporat J Land dilaksanakan dalam pelbagai bentuk. Salah satu cara untuk mencapainya direalisasikan melalui pendaftaran sistem kualiti ISO yang diiktiraf di peringkat antarabangsa. Usaha ini dilengkapkan lag i dengan pelbagai inisiatif lain bag i mempertingkatkan kualiti seperti ‘Innovative Creative Circle’ (ICC) dan Skim Cadangan Anggota Pekerja. I CC dan Skim Cadangan bertindak sebagai landasan untuk memberi kuasa kepada anggota pekerja dan sebilangan besar daripada mereka telah menunjukk an minat untuk mengambil bahagian dalam menjana idea-idea dan cadangancadangan baru. Cadangan yang bernas akan dikaji oleh Ahli Jawat ankuasa TE R A J U yang telah ditubuhkan di Johor Corporation (JCorp), perbadanan induk muktamad, sebagai pengukur dan kemungkinan pelaksanaan bagi seluruh Kumpulan. Kumpulan ICC kami telah membuktikan keupayaan mereka dalam banyak acara di peingkat Kumpulan dan di peringkat kebangsaan. Bagi tujuh tahun berturut-turut, JLand telah mengatasi persaingan di Konvensyen Kualiti yang diadakan setiap tahun di peringkat Kumpulan dengan mengekalkan piala Anugerah Mekar sebagai Juara Keseluruhan. Kumpulan ICC kami ini juga telah melonjakkan lagi pencapaian mereka dengan berjaya meraih Anugerah Emas Tiga Bintang di Konvensyen ICC Kebangsaan 2006. Kecemerlangan kualiti yang dicapai oleh JLand juga meliputi prestasi kontraktor dan pembekal pihak ketiga. Penilaian yang ketat telah dijalankan secara dalaman untuk memastikan supaya kontraktor dan konsultan mencapai taraf yang setara. Selain itu, semua kontraktor diwajibk an berdaft ar dengan Lembaga Pembangunan Industri Pembinaan Malaysia (CIDB) dan personel mereka perlu memiliki Kad Hijau CIDB. BERKONGSI KEJAYAAN Walaupun JLand telah berkembang dan mencatat pencapaian yang membanggakan, kami sentiasa memastikan agar kejayaan kami adalah menyeluruh. Sejak dahulu lagi, kami telah meletakkan tanggungjawab sosial korporat (CSR) kami sebagai program perkongsian kejayaan kami dengan menghulur bantuan kepada mereka yang memerlukan dan memberi sokongan kepada pelbagai organisasi kebajikan serta badan-badan kebajikan yang lain. Pada tahun 2006, JLand telah membelanjakan hampir RM0.5 juta untuk program-program CSR, yang meliputi sejumlah besar derma kepada beberapa rumah anak-anak yatim. Kami juga menyumbang untuk pelbagai tujuan kebajikan seperti Tijarah Ramadhan dan Tabung Kebajikan Masyarakat Pasir Gudang, yang telah menggunakan wang tersebut untuk membantu orang miskin dan mereka yang memerlukan. Untuk meringankan beban mangsamangsa banjir, melalui JCorp kami juga telah menyumbang kepada Tabung Bantuan Banjir. Seperti tahun-tahun lalu, kami merupakan salah satu penaja utama bagi Festival Layang-layang Antarabangsa, acara tahunan yang telah menjadi lambang daya tarikan pelancong bagi negeri Johor. Tunas Bistari, Program Pembangunan Usahawan yang dianjurkan JCorp melalui kerjasama dengan Jabatan Pelajaran Johor merupakan bukti kesinambungan usaha-usaha CSR yang kami laksanakan. Dilancarkan pada tahun 1992 dan dibuka kepada para pelajar sekolah menengah seluruh Johor, objektif program ini adalah untuk memupuk semangat keusahawanan di kalangan para pelajar dengan menyediakan peluang kepada mereka untuk mendapatkan pengalaman dalam dunia perniagaan sebenar. Sepanjang beberapa tahun lepas, seramai 11,148 pelajar daripada 143 sekolah telah mendapat manfaat daripada program tersebut. MELANGKAH KE HADAPAN – WILAYAH PEMBANGUNAN ISKANDAR Bagi TK 2007 yang akan datang, ekonomi Malaysia dijangka akan mencatat pertumbuhan pada kadar yang lebih tinggi sedikit daripada 6%, didorong oleh pengembangan aktiviti sektor swasta. Para penganalisis mengekalkan pandangan berkecuali terhadap pasaran hartanah di Johor. Walau bagaimanapun, kami amat optimis bahawa dengan penghapusan cukai keuntungan hartanah sebenar dan pengurangan peraturan terhadap pembelian hartanah oleh orang asing akan menyuntik minat yang lebih besar terhadap sektor hartanah. Permintaan mampu dikekalkan berikutan syarat pinjaman menarik yang ditawarkan oleh pihak bank, peningkatan tahap kemewahan di kalangan penduduk muda dan pertambahan bilangan penghijrahan ke bandar. Salah satu inisiatif penting digariskan di bawah Rancangan Malaysia ke-9 (9MP) yang berkaitan dengan operasi JLand ialah pengenalan Wilayah Pembangunan Iskandar (WPI) sebagai kawasan yang diberikan tumpuan untuk pembangunan di kawasan selatan. Projek pembangunan utama yang dikenalpasti di bawah pelan induk WPI Johor Land Berhad 2006 annual report laporan tahunan 31 statement to shareholders The FY 2007 is already shaping up to be a busy and eventful one for JLand, with the launch of residential and commercial properties valued at around RM200 million. At Pasir Gudang, we are set to launch another 310 units of Serene (Phase 2) and Damai double storey terraced houses. Moving into the Phase 2 development of Taman Bukit Tiram, 378 units of single storey Daisy terraced houses will be launched in the second quarter of 2007. We will also kick-off the development of Bandar Tiram with the launch of 693 units of single storey terraced houses towards the end of 2007. The coming year will also see the launch of double storey terraced and semi-detached residential units designed for a niche high-end market, under the Phase 1 development of Bandar Dato’ Onn. Even with all these projects underway, JLand has a substantial land bank in Johor that would keep the Group busy for the next 10 to 15 years. There is significant potential from our land parcels as they were acquired at competitive prices and are strategically located along the main growth corridors of Johor Bahru and the Iskandar Development Region. When eventually developed, our land reserves have a potential GDV of over RM7.0 billion. Having firmly established ourselves as one of the largest property developers in Johor, we are ready to move up the value chain and venture into more lucrative markets. APPRECIATION Professionalism, commitment and hard work are bedrock elements of our success all these years and we attribute this to the superb team under very able leadership that we have on board. Much is expected of our management and staff, and they have never failed to deliver. JLand also considers itself fortunate in having a great support group comprising our business associates, financiers, consultants, relevant authorities and various government departments. Our shareholders and customers deserve special mention, for their continued support and loyalty have built this Company. Tuan Hj Md Tamyes Bin A Rahim, Tuan Hj Ahamad Bin Mohamad and Puan Azizah Bte Abdul Rahman left the Board during the year. We are very appreciative of their tremendous contributions and wish them every success in their future undertakings. The three new appointees to the Board were Tuan Hj Lukman Bin Abu Bakar, Tuan Hj Abdul Malek Bin Talib and Tuan Hj Yusof Bin Rahmat. They bring with them a wealth of knowledge and experience and JLand will no doubt benefit from their fresh insights. To all of you, we express our sincere thanks and gratitude. 32 Johor Land Berhad laporan tahunan 2006 annual report penyata kepada para pemegang saham dijangka berupaya menukarkan Johor Selatan sebagai hab mega. Kawasan WPI meliputi tiga tanah simpanan utama JLand yang terletak di Pasir Gudang, Ulu Tiram dan Johor Bahru. Apabila projek infrastruktur di WPI dimulakan seperti yang dirancang, ia dijangka akan memberi kesan positif terhadap hartanah kami, diperkukuhkan lagi dengan aliran pelaburan dari negara jiran. TK 2007 telah mula menunjukkan tanda-tanda ia merupakan satu tahun yang sibuk dan penuh peristiwa bagi JLand apabila hartanah kediaman dan komersil bernilai RM200 juta dilancarkan. Di Pasir Gudang, kami akan melancarkan sebanyak 310 unit rumah teres dua tingkat jenis Serene (Fasa 2) dan Damai. Di Taman Bukit Tiram, pembangunan Fasa 2 yang meliputi 378 unit rumah teres satu tingkat jenis Daisy akan dilancarkan pada suku kedua tahun 2007. Kami juga akan memulakan pembangunan Bandar Tiram dengan pelancaran sebanyak 693 unit rumah teres satu tingkat menjelang akhir tahun 2007. Pada tahun depan juga akan menyaksikan pelancaran kediaman teres dua tingkat dan rumah berkembar yang direka khusus untuk pasaran golongan mewah di bawah pembangunan Fasa 1 Bandar Dato’ Onn. Walaupun semua projek sedang dilaksanakan, JLand masih mempunyai tanah simpanan yang besar di Johor yang akan memenuhi aktiviti perniagaan Kumpulan untuk tempoh 10 hingga 15 tahun akan datang. Beberapa tanah yang kami miliki mempunyai potensi yang besar kerana kami memperolehinya dengan harga yang kompetitif dan terletak di lokasi strategik sepanjang koridor pertumbuhan utama Johor Bahru dan Wilayah Pembangunan Iskandar. Apabila dilaksanakan, tanah simpanan kami berpotensi menghasilkan GDV melebihi RM7.0 bilion. Setelah berjaya menempa nama sebagai salah sebuah pemaju hartanah terbesar di Johor, kini kami telah bersedia untuk beralih ke dalam rantaian nilai yang lebih tinggi dan memasuki ke dalam pasaran yang lebih menguntungkan. PENGHARGAAN Tahap profesionalisma, komitmen dan kegigihan merupakan elemen utama kejayaan kami selama ini dan dengan demikian penghargaan ini ditujukan kepada barisan lembaga pengarah yang telah menyediakan kepimpinan yang hebat. Kami telah meletakkan harapan yang tinggi kepada pengurusan dan anggota pekerja dan mereka telah berjaya melaksanakan tanggungjawab yang diberikan dengan sempurna. JLand juga menghargai kerjasama padu yang diterima daripada pelbagai pihak termasuk rakan-rakan dalam perniagaan, pembiaya, konsultan, pihak berkuasa berkaitan dan pelbagai jabatan kerajaan. Ucapan penghargaan ini juga ditujukan kepada para pemegang saham dan pelanggan kami atas sokongan dan kesetiaan berkekalan mereka yang telah membina kemantapan Syarikat ini. Tuan Hj Md Tamyes Bin A Rahim, Tn Hj Ahamad Bin Mohamad dan Pn Azizah Bte Abdul Rahman telah menamatkan perkhidmatan dalam Lembaga Pengarah pada tahun ini. Kami amat menghargai sumbangan besar mereka dan mengucapkan selamat maju jaya dalam setiap bidang yang mereka ceburi pada masa depan. Tiga orang ahli baru telah dilantik ke dalam Lembaga dan mereka terdiri daripada Tn Hj Lukman Bin Abu Bakar, Tn Hj Abdul Malek Bin Talib dan Tn Hj Yusof Bin Rahmat. Mereka membawa bersama mereka pengetahuan dan pengalaman yang luas dan ini pasti akan memberi manfaat kepada JLand pada masa depan. Kepada anda semua, kami ingin menyampaikan ucapan setinggi-tinggi terima kasih dan penghargaan setulus hati. TAN SRI DATO’ MUHAMMAD ALI HASHIM Chairman/Pengerusi A.F.M SHAFIQUL HAFIZ Managing Director/Pengarah Urusan Johor Land Berhad 2006 annual report laporan tahunan 33 20 d i a r i 2006 corporate diary corporate 4 Jan/Jan 22 Feb/Feb 16 Mar/Mac 25 Mar/Mac 11 Apr/Apr 14 Apr/Apr 24 May/Mei 17 Jul/Jul january march januari mac 4 January/Januari 16 March/Mac Pedoman Meeting was held at Permata JLand contributed a van, costs RM90,000 to 14 April/April Asia Pacific Real Estate Exhibition organised by FIABCI at Sun Tec Singapore. Pameran Perumahan Asia Pacific dikendalikan oleh FIABCI di Sun Tec Singapura. Ballroom, The Puteri Pacific Hotel, 80000 Darul Hanan, an orphanage home in Pasir Johor Bahru. Gudang. Majlis Pedoman diadakan di Dewan Permata, JLand menyumbang sebuah van berharga Hotel Puteri Pacific, 80000 Johor Bahru. RM90,000 kepada Darul Hanan, rumah m e i anak-anak yatim di Pasir Gudang. february 25 March/Mac februari Bandar Dato’ Onn Merdeka Carnival Prize 22 February/Februari Giving Ceremony. Tunas Bistari 2006. J Land contributed Bandar Dato’ Onn. RM150,000 to the program. Orient asi Tunas Bist ari 2006. J Land menyumbang sejumlah RM150,000 untuk program berkenaan. 24 May/Mei The 31st Annual General Meeting and Official Launching & Orientation Program of Majlis Penyampaian Hadiah Karnival Merdeka Majlis Pelancaran & Perasmian Program may Extraordinary General Meeting of JLand was held at Delima Room, The Puteri Pacific Hotel, 80000 Johor Bahru. Mesyuarat Agung Tahunan kali ke 31 dan Mesyuarat Agung Luarbiasa JLand diadakan di Bilik Delima, Hotel Puteri Pacific, 80000 april april 11 April/April Johor Bahru. july JLand participated in “Maulidur Rasul 2006” j u l a i at Masjid Jamek, Pasir Gudang. 17 July/Julai JLand menyertai Majlis Sambutan Maulidur Student visit from Sek. Men. Teknik, Pontian Rasul 2006 di Masjid Jamek, Pasir Gudang. Johor at Sales Office, Pasir Gudang. Lawatan pelajar dari Sek. Men. Teknik, Pontian Johor di Pejabat Jualan, Pasir Gudang. 34 Johor Land Berhad laporan tahunan 2006 annual report 0diary 6 k o r p o r a t diari korporat 2006 25 Jul/Jul 19-21 Sept/Sept 27 Sept/Sept 15-16 Nov/Nov 18 Nov/Nov 25 Nov/Nov 26 Nov/Nov 19-22 Dec/Dis 25 July/Julai J Land organized an Analyst Briefing to Netresearch – Asia Sdn Bhd. JLand mengadakan “Analyst Briefing” untuk Netresearch – Asia Sdn Bhd. november november 15-16 November/November National I CC Convention was held at Genting International Convention Centre, family was held at The Managing Director’s residence at Green Plains, Taman Bukit Mesra Ria Aidilfitri 2006 untuk anggota Konvensyen ICC JLand 2006 diadakan di pekerja dan keluarga diadakan di kediaman Dewan Menara, Komtar, 80000 Johor Bahru. Pengarah Urusan di Green Plains, Taman september 19-21 September/September “Mesra Ria Aidilfitri 2006” for staff and The ICC Convention JLand 2006 was held at Tiram, Tiram, Johor. Dewan Menara, Komtar, 80000 Johor Bahru. september 26 November/November Bukit Tiram, Tiram, Johor. 18 November/November “Riang Ria Aidilfitri” Carnival with customers at Taman Bukit Dahlia, Pasir Gudang. december disember First World Hotel, Genting Higlands. Top Q Karnival Riang Ria Aidilfitri bersama pelanggan 19-22 December/Disember Group, Merger Dot Com Group and Get di Taman Bukit Dahlia, Pasir Gudang. “Hari Mekar” Johor Corporation Group was Max Group won 3 Gold Star Award. Konvensyen ICC Kebangsaan diadakan di Genting International Convention Centre, First World Hotel, Genting Highlands. Kumpulan Top Q, Kumpulan Merger Dot Com dan Kumpulan Get Max memperolehi Anugerah Emas 3 Bintang. 25 November/November held at Persada Johor International Prize Giving Ceremony of Landscape Convention Centre. JLand was declared as Competition, Johor State Level by Chief the Overall Winner in 2006, for the seventh Minister of Johor. JLand was declared as the consecutive year. Second Winner. Hari Mekar, Kumpulan Johor Corporation Penyampaian Hadiah Pertandingan Lanskap diadakan di Persada Johor Pusat Konvensyen Peringkat Negeri Johor oleh Menteri Besar Antarabangsa. J Land telah diumumkan 27 September/September Johor. J Land telah diumumkan sebagai sebagai Pemenang Keseluruhan bagi tahun Official Launching of Tijarah Ramadhan 2006 pemenang Tempat Kedua. 2006, untuk tahun ke tujuh berturut-turut. at Hall 10, Putrajaya International Convention Centre. JLand contributed RM30,000 to the program. Pelancaran Tijarah Ramadhan 2006 di Dewan 10, Pusat Konvensyen Antarabangsa Putrajaya. J Land menyumbang sejumlah RM30,000 untuk program berkenaan. Johor Land Berhad 2006 annual report laporan tahunan 35 audit committee report TERMS OF REFERENCE The Audit Committee was established on 2 September 1996 to act as a Committee for the Board of Directors. COMPOSITION OF MEMBERS Members No. of meetings attended Percentage Kua Hwee Sim (Chairman) Independent Non Executive Director (appointed as Chairman w.e.f 15 February 2007) 4 out of 4 100% Mahlil Bin Omar Independent Non Executive Director (resigned as Chairman w.e.f 15 February 2007) 4 out of 4 100% Lukman Bin Hj Abu Bakar Non Independent Non Executive Director (appointed as Member w.e.f 15 August 2006) 1 out of 2 50% Azizah Binti Abdul Rahman Non Independent Non Executive Director (resigned as Member w.e.f 15 August 2006) 2 out of 2 100% OBJECTIVES MEETINGS OF THE AUDIT COMMITTEE The objectives of the Audit Committee are:- 1. To ensure compliance with Paragraph 15, Part C of the Bursa Malaysia Securities Berhad’s Listing Requirements. The Audit Committee is to meet not less than four (4) times a year. 2. 2. To ensure the independence of the External Auditors, the integrity of management, and the adequacy of disclosures to shareholders. The quorum for each meeting shall be two (2) members of the Audit Committee both of whom shall be Independent Directors. 3. 3. To assist the Board of Directors in fulfilling its fiduciary responsibilities by ensuring that the results of internal and external audit findings are fully considered and properly resolved. The Audit Committee may regulate its own procedures in respect of the convening of meetings, the notice to be given of such meetings, the voting and proceedings thereof, the keeping of minutes and the custody, production and inspection of such minutes. 4. The Chairman of the Audit Committee shall submit a report of each meeting to the Board. 5. The Managing Director, the Group Financial Controller and the Head of Internal Audit attended all meetings. Other members of senior management attended some of the meetings upon invitation by the Audit Committee. The Company Secretary is the Secretary to the Audit Committee. 6. During the financial year ended 31 December 2006 the Audit Committee held a total of four (4) meetings. The details of attendance of the Audit Committee Members are as per table above. 1. COMPOSITION The Board shall elect an Audit Committee, comprising not fewer than three members of whom the majority must be Independent Directors. The Chairman of the Audit Committee shall be appointed by the Board. 36 Johor Land Berhad laporan tahunan 2006 annual report audit committee report AUTHORITY SUMMARY OF ACTIVITIES The Audit Committee is authorised by the Board:- The Audit Committee has during the financial year ended 31 December 2006 discharged the following functions:- 1. To investigate any matters within its terms of reference; 2. To have the resources which are required to perform its duties; 1. Reviewed the unaudited quarterly results and financial statements of the Company and its subsidiaries. 3. To have full and unrestricted access to any information pertaining to the listed issuer; 2. Reviewed the financial statements of the Group and Company for the financial year ended 31 December 2006 with the External Auditors and discussed before it was approved by the Board. 3. Reviewed and endorsed the Audit Plan of the Group for the financial year ended 31 December 2006. 4. Deliberated Audit Report on audit assignments. 5. Reviewed and discussed recent developments on accounting and auditing standards issued by the Malaysian Accounting Standards Board. 6. Reviewed the related party transactions entered into by the Company and JCorp Group of Companies. 7. Met with the External Auditors without the presence of the Management, pursuant to the Best Practices of Malaysian Code of Corporate Governance. 4. To have direct communication channels with the external auditors and person(s) carrying out the internal audit function or activity (if any); 5. To be able to obtain independent professional or other advice; 6. To be able to convene meetings with the External Auditors, excluding the attendance of the Executive Members of the Board, whenever deemed necessary. FUNCTIONS Pursuant to Para 15.13 of the Bursa Malaysia Securities Berhad Listing Requirements, the Audit Committee amongst others, shall review, appraise and report to the Board on:1. The appointment of the External Auditors, their audit fees and in the event of their resignation or dismissal with full explanatory statements. 2. The adequacy of the scope, functions and resources of the internal audit function and results of the internal audit procedures. 3. The quality and effectiveness of the entire accounting and internal control system of the Group. 4. The adequacy of the audit effort by both the External and Internal Auditors. 5. The adequacy of the disclosures of information essential to give a true and fair presentation of the financial affairs of the Group. 6. Any material discoveries of adjustments made by the External or Internal Auditors. 7. The quarterly results and yearly financial statements, prior to the approval by the Board, focusing particularly on:i. Changes in major accounting policies and their implementation and the effects of such changes; ii. Significant and unusual events; and iii. Compliance with stated accounting standards and other legal requirements. 8. Any related party transactions and conflict of interest situation that may arise, including any transactions, procedures or course of conduct that raise question of management integrity. 9. The assistance given by the employees to the External Auditors. 10. Any such other functions as may be agreed to by the Audit Committee and the Board. INTERNAL AUDIT FUNCTION The Internal Audit Function of the Company is to independently perform all the planned activities with impartiality, proficiency and due professional care. The Internal Audit Function provides independent assurance on the efficiency and effectiveness of the internal control implemented by Management. In this context, the Internal Audit Function forms an integral part of the management process. The Head of the Internal Audit will report directly to the Audit Committee and administratively to the Managing Director. In carrying out the scope of their duties, the Audit Committee updates the Board from time to time on the issues and concerns discussed during the Audit Committee Meetings including those advised by the External Auditors and where appropriate, made the necessary recommendations to the Board. Johor Land Berhad 2006 annual report laporan tahunan 37 corporate governance 39 • Statement on Corporate Governance 44 • Statement on Internal Control 47 • Statement on Directors’ Responsibility 48 • Additional Disclosure Information 38 Johor Land Berhad laporan tahunan 2006 annual report statement on corporate governance THE BOARD OF DIRECTORS (“THE BOARD”) OF JOHOR LAND BERHAD (“JLAND” OR “THE COMPANY”) CONFIRMS THAT DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2006, IT HAS CONTINUED TO INCORPORATE EFFECTIVE GOVERNANCE PRACTICES IN THE OVERALL BUSINESS OF THE COMPANY AND ITS SUBSIDIARIES IN COMPLIANCE WITH THE PRINCIPLES AND BEST PRACTICES OF THE MALAYSIAN CODE ON CORPORATE GOVERNANCE (“THE CODE”). THE BOARD IS DETERMINED AND COMMITTED TOWARDS ENSURING MAXIMUM SHAREHOLDERS’ VALUE AND ENHANCING INVESTORS’ INTEREST WITH THE APPLICATION OF THE PRINCIPLES OF THE CODE. THE BOARD OF DIRECTORS 1. Board Composition The Board composition is continuously reviewed. During the financial year under review, the Board continued to be well balanced, in which the substantial shareholders are adequately represented, whilst the interest of the minority shareholders are represented by the Independent Directors. The Board’s diverse professional expertise has provided a requisite depth and quality in its deliberation and decision making. The Board is equipped with sufficient skills and competency to control the direction of the Company. 2. Board Meeting At every Board Meeting, Board papers were delivered in advance to facilitate informed decision making. During the meeting, various business issues were deliberated inclusive of discussion on the strategic business planning of the Group, review of quarterly financial reporting, evaluation of tenders and progress of the development projects. Presentations to the Board were made at appropriate times by the Management on business development and proposals for Board’s approval. Reports from the Audit Committee were also discussed during the Board Meetings. During the financial year under review, the Board conducted four (4) meetings and the details of attendance of each Director are as follows:- Directors No. of Meetings attended Percentage Tan Sri Dato’ Muhammad Ali Hashim (Non Independent Non Executive – Chairman) 4 out of 4 100% Mohd Talhar Bin Abdul Rahman (Non Independent Non Executive – Deputy Chairman) 2 out of 4 50% A.F.M Shafiqul Hafiz (Managing Director) 4 out of 4 100% — — Lukman Bin Hj Abu Bakar (Non Independent Non Executive) (appointed w.e.f 1 August 2006) 2 out of 2 100% Yusof Bin Rahmat (Non Independent Non Executive) (appointed w.e.f 1 January 2007) – – Abdul Malek Bin Talib (Executive Director) (appointed w.e.f 1 January 2007) Johor Land Berhad 2006 annual report laporan tahunan 39 statement on corporate governance During the financial year under review, the Board conducted four (4) meetings and the details of attendance of each Director are as follows (cont’d.):- Directors 3. No. of Meetings attended Percentage Dato Haji Hassan Bin Haji Mohd Yunos (Senior Independent Director) 3 out of 4 75% Mahlil Bin Omar (Independent Director) 4 out of 4 100% Kua Hwee Sim (Independent Director) 4 out of 4 100% Azizah Binti Abdul Rahman (Non Independent Non Executive) (resigned w.e.f 15 August 2006) 2 out of 2 100% Ahamad Bin Mohamad (Non Independent Non Executive) (resigned w.e.f 1 August 2006) 2 out of 2 100% Mohd Tamyes Bin A Rahim (Non Independent Non Executive) (resigned w.e.f 2 May 2006) 1 out of 1 100% Board Balance The Board consists of nine (9) members. Three (3) of the Directors are Independent Non Executive Directors, as required by the Listing Requirements of Bursa Malaysia Securities Berhad. Independent Directors will facilitate the decision making process by providing unbiased and independent opinion. 6. Appointments to the Board The actual decision as to who shall be nominated is the responsibility of the full Board after considering the recommendations by the Nomination and Remuneration Committee (“NRC”) of Johor Corporation (“JCorp”). The NRC is responsible for proposing respective new nominees for the Board and for assessing Directors on an on-going basis. The Managing Director has the principal responsibility of reporting, clarifying and communicating matters to the Board. The Board has also appointed Dato Hj Hassan Bin Hj Mohd Yunos as the Senior Independent Non Executive Director, to whom concerns may be conveyed. 7. Re-Election In accordance with the Company’s Articles of Association any Director so appointed shall hold office only until the next following Annual General Meeting, and shall then be eligible for re-election. 4. Supply of Information All Directors are regularly informed on timely basis on all relevant information pertaining to the Company’s operation that warrants the Board’s attention. Further, the Board has full and unrestricted access to all information within the Company as a full Board or in their individual capacity, in furtherance of their duties. 5. Directors’ Training The Board took note of the amendments to the Listing Requirement, which stated that the board of directors of listed companies will assume the onus of determining or overseeing the training needs of their directors. Save for Abdul Malek Bin Talib and Yusof Bin Rahmat who were appointed on 1 January 2007, all Directors had attended the Mandatory Accreditation Programme as prescribed by Bursa Malaysia. 40 Johor Land Berhad laporan tahunan 2006 annual report In addition at every succeeding Annual General Meeting, one-third (1/3) of the Directors, or, if their number is not a multiple of three (3), the number nearest to, but not exceeding one-third (1/3), shall retire from office. All Directors shall retire from office once at least in each three (3) years but shall be eligible for re-election. The Managing Director shall subject to provisions of any contract between him and the Company be subject to the same provisions as to resignation and removal as the other Directors of the Company and if he ceases to hold the office of Director for any cause he shall ipso facto and immediately cease to be a Managing Director. As for Directors who are over 70 years of age, they are required to submit themselves for re-appointment annually as required by Section 129(6) of the Companies Act, 1965. statement on corporate governance 8. Directorship in Other Companies As required by the Listing Requirements, none of the Directors of the Company holds more than 10 directorships in public listed companies and more than 15 in non-public listed companies. This ensures that their commitment, resources and time are focused to enable them to discharge their duty effectively. 9. Board Committees The Board has delegated certain specific responsibilities to two (2) committees which operate within clearly defined term of references, with the main objective to assist the Board in discharging its duties and responsibilities. The Tender Board Committee is chaired by Dato Hj Hassan Bin Hj Mohd Yunos. Its deliberation includes scope of work, tender estimate, period of completion and recommendations by Tender Evaluation Committee. The Audit Committee (“AC”) is currently chaired by Kua Hwee Sim and comprises three (3) members, of which two (2) members are Independent Directors. AC meets routinely four (4) times a year. The Managing Director, Chief Operating Officer, Chief Finance Officer, Head of Internal Audit and External Auditors attend such meetings by invitation. The function and activities carried out by AC during the year under review are contained in the Audit Committee Report as presented on page 36 to 37 of this Annual Report. Considering its important roles under the governance regime, AC has also conducted self-assessment of its effectiveness. The evaluation summarises key principles and best practices that were aligned to Chapter 15 of Listing Requirements, the Code and the Guidance and is provided for AC Members’ use in assessing AC’s performance. It was extracted from “Audit Committee Effectiveness – What Works Best (3rd Edition)” published by PricewaterhouseCoopers (“PwC”) and sponsored by the Institute of Internal Auditors (“IIA”) Research Foundation, USA. The evaluation covers areas on Financial Statements; Risk Management and Internal Control; Compliance and Ethics; Oversight of Management and Internal Audit; Relationship with External Auditors; Committee Composition; Training; Resources and Special Investigations; Charter and Evaluation; and Meetings. In line with JCorp’s Group-wide corporate practice, JLand’s Nomination and Remuneration Committees (“NRC”) were dissolved and the functions and responsibilities are now vested with the Group Nomination and Remuneration Committees of JCorp. JLand is directly represented at the JCorp Group NRC by its Chairman and Managing Director who are respectively the Chairman and official member of the JCorp Group NRC. This approach in centralising NRC functions at the Group’s centre is not an uncommon practice among top global companies and leading Multi National Corporations. The prime consideration is the strategic advantage that the Centre provides by allowing wider access and greater reach to a much larger pool of talent, skills and expertise as well as to benchmark remunerations on a Group-wide basis. 10. Board’s Effectiveness The Board forms an important structure/platform of the overall sound internal control system. Starting 2007, the Nomination and Remuneration Committee of JCorp has agreed to adopt a streamlined format for the Board of Directors’ evaluation forms. One of the evaluations is extracted from “Corporate Governance and the Board – What Works Best” published by PwC and sponsored by IIA Research Foundation, USA. The evaluation covers areas on Strategy and Planning; Risk Management; Tone at the Top; Measuring and Monitoring Performance; Transformational Transactions; Management Evaluation; Compensation and Succession Planning; Transparency; and Board Dynamics. Johor Land Berhad 2006 annual report laporan tahunan 41 statement on corporate governance DIRECTORS’ REMUNERATION As indicated in Paragraph 9 above, the Nomination and Remuneration Committee of JCorp is also responsible for making recommendations on the framework, policy and procedures in reviewing and determining the specific remuneration package of the Directors in JLand. The objectives of the remuneration policy are: • to ensure that individual rewards and incentives fairly relate to the performance of the individual, the Company and the interests of shareholders; and • to attract and retain the most qualified and experienced senior executives. The Committee, where appropriate, seeks independent advice and also has access to pooled information on the latest remuneration and compensation packages practised in the market. Details of the remuneration paid/payable to each Director for the financial year are as below:- Directors Bonuses & Others (RM) Benefitsin-kind (RM) Total (RM) Tan Sri Dato’ Muhammad Ali Hashim (Non Independent Non Executive Chairman) — 48,000 — — 48,000 Mohd Talhar Bin Abdul Rahman (Non Independent Non Executive Deputy Chairman) — 24,000 — — 24,000 211,800 138,000 156,141 51,044 556,985 Abdul Malek Bin Talib (Executive Director) (appointed w.e.f 1 January 2007) — — — — — Lukman Bin Hj Abu Bakar (Non Independent Non Executive) (appointed w.e.f 1 August 2006) — 10,000 — — 10,000 Yusof Bin Rahmat (Non Independent Non Executive) (appointed w.e.f 1 January 2007) — — — — — Dato Haji Hassan Bin Haji Mohd Yunos (Senior Independent Director) — 24,000 — — 24,000 Mahlil Bin Omar (Independent Director) — 24,000 — — 24,000 Kua Hwee Sim (Independent Director) — 24,000 — — 24,000 Azizah Binti Abdul Rahman (Non Independent Non Executive) (resigned w.e.f 15 August 2006) — 15,000 — — 15,000 Ahamad Bin Mohamad (Non Independent Non Executive) (resigned w.e.f 1 August 2006) — 12,000 — — 12,000 Mohd Tamyes Bin A Rahim (Non Independent Non Executive) (resigned w.e.f 2 May 2006) — — — 6,000 A.F.M Shafiqul Hafiz (Managing Director) * Directors’ fees paid to pool fund of JCorp. 42 Basic Fees & Salary Allowances (RM) (RM) Johor Land Berhad laporan tahunan 2006 annual report 6,000* statement on corporate governance SHAREHOLDERS (a) Relationship with Shareholders and Investors The Annual General Meeting (“AGM”) is the principal forum for dialogue with shareholders. To ensure that shareholders and investors are well informed of major developments of the Group, information is disseminated to shareholders and investors through various disclosures and announcements to Bursa Malaysia which include quarterly financial results, as well as through the annual report and where appropriate, circulars and press releases. However, any information that may be regarded as undisclosed material information about the Group will be safeguarded. (b) Internal Control The Statement on Internal Control is set out in page 44 to 46 of this Annual Report provides an overview of the Group’s approach in maintaining a sound system of internal control to safeguard shareholders’ investment and the Group’s assets. (c) Relationship with the Auditors The Board through the Audit Committee has maintained an appropriate relationship with the External Auditors and there is a formal and transparent arrangement in the review of the External Auditors’ audit plan, report, internal control issues and procedures. Representatives from the External Auditors were also invited to attend every Audit Committee Meeting. The Audit Committee also met with the External Auditors without the presence of the Management and the Executive Board Members. (d) Audit Committee The Audit Committee Report for the financial year is provided in page 36 to 37 of this Annual Report. The Group also maintains a website www.jland.com.my for shareholders and public to access corporate information and new events related to the group. (b) Annual General Meeting At each AGM, the Chairman presents the progress and performance of the business and encourages shareholders to participate in the question and answer session. Members of the Board and Senior Management are present and available to respond to shareholders’ questions during the meeting. Item of special business included in the notice of the meeting will be accompanied by a full explanation of the effects of a proposed resolution. ACCOUNTABILITY AND AUDIT (a) Financial Reporting In presenting the annual financial statements and quarterly announcement to shareholders, the Board aims to present a balanced and an understandable assessment of the Group’s position and prospects. TAN SRI DATO’ MUHAMMAD ALI HASHIM Chairman COMPLIANCE TO THE CODE Except for matters specifically identified, JLand Group was substantially in compliance with the Principles and Best Practices in Corporate Governance throughout the financial year ended 31 December 2006. Signed on behalf of the Board of Directors in accordance with their resolution dated 27 February 2007. A.F.M SHAFIQUL HAFIZ Managing Director Johor Land Berhad 2006 annual report laporan tahunan 43 statement on internal control THE BOARD OF DIRECTORS (“THE BOARD”) OF JOHOR LAND BERHAD (“THE COMPANY” OR “JLAND”) IS PLEASED TO PROVIDE THE STATEMENT ON INTERNAL CONTROL PURSUANT TO PARAGRAPH 15.27 (B) OF THE LISTING REQUIREMENTS. THE BOARD ACKNOWLEDGES ITS RESPONSIBILITY IN MAINTAINING A SOUND SYSTEM OF INTERNAL CONTROL TO SAFEGUARD SHAREHOLDERS’ INVESTMENT AND THE COMPANY’S ASSETS. In discharging the stewardship responsibilities, the Board recognises its responsibilities in reviewing the adequacy and the integrity of internal control systems and management information systems of JLand Group, including systems for compliance with applicable laws, regulations, rules, directives and guidelines as well as identifying principal risks and ensures the implementation of appropriate systems to manage the risks. The Group’s internal control system is designed to manage rather than eliminate risk of failure to achieve business objectives and can only provide reasonable assurance and not absolute assurance against material misstatement or loss. For the financial year under review, the Board is satisfied that there is an ongoing process of identifying, evaluating and managing the significant risks faced by the Company. In providing the Statement on Internal Control for the Group, pursuant to Para 46 of the “Statement on Internal Control - Guidance for Directors of Public Listed Companies” (“the Guidance”), the Board wishes to inform that it has excluded the assessment of controls on associated company i.e. Revertex (M) Sdn Bhd (“Revertex”), where the assurance on internal control of the company is obtained through JLand’s representation on the board of Revertex. JLand has adopted COSO Internal Control Framework since 2001. This is in line with the Guidance. Internal control is defined as a process, effected by JLand’s Board of Directors and Management, designed to provide reasonable assurance regarding the achievement of the company’s objectives. In this regard, JLand has conducted annual survey based on the five COSO elements among the employees. The key elements of the Group’s internal control systems are described below: MONITORING RISK ASSESSMENT CONTROL ENVIRONMENT INFORMATION & COMMUNICATION 44 Johor Land Berhad laporan tahunan 2006 annual report CONTROL ASSESSMENT statement on internal control CONTROL ENVIRONMENT RISK ASSESSMENT The Board has clear strategies for dealing with the significant risks that have been identified. The Board and the Senior Management set the tone of the organisation by demonstrating to staff and stakeholders, through words and actions, that integrity and ethical values cannot be compromised. Factors influencing the control environment include the management’s philosophy and operating style, the manner in which management assigns authority and responsibility, and the attention and direction provided by the Board. The Board acknowledges its responsibilities in identifying principal risks and ensuring the implementation of appropriate systems to manage these risks. For the financial year under review, the Board is satisfied that the Group’s objectives are adequately supported by strategic planning, business plan and budgets. The Group has in place, an effective risk management policy together with mechanisms effective enough to anticipate and respond to changes. The Group adopted AS/NZS 4360:2004 Risk Management Framework. The Risk Management Framework is as follows: COMMUNICATE & CONSULT ESTABLISH THE CONTEXT IDENTIFY RISKS ANALYSE RISKS EVALUATE RISKS TREAT RISKS MONITORING & REVIEW During the financial year, four (4) Risk Management Reports have been deliberated to the Board. Amongst the reports are the highlights on risk assessments within the context of JLand’s Strategic Planning 2006 – 2010 and business opportunities and threats in terms of the property market. The Risk Management function is led by the Chief Risk Officer who oversees the overall risk management activities of the Company. CHIEF RISK OFFICER RISK OFFICER JOHOR BAHRU PASIR GUDANG TIRAM TEBRAU Johor Land Berhad 2006 annual report laporan tahunan 45 statement on internal control CONTROL ACTIVITIES Other monitoring functions: The Group has established procedures for reporting immediately to appropriate levels of management any significant control failings or weaknesses that are identified together with details of corrective actions being undertaken. 1. Other oversight function within the Company is the Internal Audit Function which is independent of the activities they audit and has performed their duties with impartiality, proficiency and due professional care. As part of good corporate governance, the internal audit services add substantive value to JLand by providing assurance that its exposures are understood and managed appropriately. There has been adequate processes for authorizations (limits of authorities), reviewing and approving reconciliations within the Group. Controls are in place through policies and procedures and considered sufficient to meet the Company’s objectives. 2. MONITORING Senior Management is actively involved in all operations of the Company, and has direct contact with customers, suppliers, production activities, bankers, etc. Management frequently challenges financial and management reports that are inconsistent within its knowledge. The Board regularly receives and review reports on internal control. The internal control considered by the Board includes all types of controls including those of operational and compliance in nature, as well as internal financial controls. Reports on the state on internal control i.e. the adequacy and integrity of the internal controls of the company is provided by an independent Internal Audit Function which possess the necessary expertise to perform their duties. GOVERNANCE COMMITTEES At the management level, various committees have been formed to ensure that decisions are made collectively and after thorough discussion. JLand has established fifteen (15) Governance Committees to facilitate the operations. INFORMATION AND COMMUNICATION The entity-wide strategic plan developed by Management identifies the internally and externally generated information. Information must be identified, captured and communicated in a form and time frame which enables people to carry out their responsibilities. Personnel must receive a clear message from top management that control responsibilities must be taken seriously. Employees must understand their own role in the internal control system and how individual activities relate to the work of others. Also there must be means of communicating significant information upstream. There must also be an effective communication with outsiders such as customers, suppliers, regulators and shareholders. AUDIT DEPARTMENT 3. INTERNAL QUALITY AUDIT (IQA) AND SURVEILLANCE Internal Quality Audit and followed by SI RI M QAS’s Surveillance Audit is to ensure that JLand is in compliance with the ISO Standards. The surveillance audit which was held in mid-2006 has concluded satisfactorily. JLand’s accreditation to the stringent requirements of the MS ISO 9001:2000 Standard is a manifestation of its commitment to ensure the Quality Management System is effectively implemented and continuously improved. REVIEW BY THE EXTERNAL AUDITORS The External Auditors have reviewed this Statement pursuant to Paragraph 15.24 of the Listing Requirements and in accordance with Recommended Practice Guide (“RPG”) 5, Guidance for Auditors on the Review of Directors’ Statement on Internal Control. THE BOARD’S CONCLUSION The Board is pleased to report that the Group has maintained a sound internal control system for the financial year under review which provides reasonable but not absolute assurance that the Group will not be hindered in achieving their business or be affected by any circumstances which may reasonably foreseen. Signed on behalf of the Board of Directors in accordance with their resolution dated 27 February 2007. TAN SRI DATO’ MUHAMMAD ALI HASHIM A.F.M SHAFIQUL HAFIZ Chairman Managing Director 46 Johor Land Berhad laporan tahunan 2006 annual report statement on directors’ responsibility The Directors consider that, in preparing the financial statements of the Group and of the Company for the financial year ended 31 December 2006, the Group and the Company have used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgements and estimates. The Directors also consider that all applicable approved accounting standards for entities other than private entities issued by MASB in Malaysia have been followed and confirm that the financial statements have been prepared on a going concern basis. The Directors are responsible for ensuring that the Company and its subsidiaries keep accounting records which disclose with reasonable accuracy at any time the financial position of the Group and of the Company and which enable them to ensure that the financial statements comply with the provisions of the Companies Act, 1965. The Directors are also responsible for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities. Signed on behalf of the Board of Directors in accordance with their resolution dated 27 February 2007. TAN SRI DATO’ MUHAMMAD ALI HASHIM A.F.M SHAFIQUL HAFIZ Chairman Managing Director Johor Land Berhad 2006 annual report laporan tahunan 47 additional disclosure information UTILIZATION OF PROCEEDS The Company did not implement any fund raising exercise during the financial year. SHARE BUY-BACK During the financial year, the Company repurchased in the open market 118,800 of its issued ordinary shares as per table below. As at 31 December 2006, the Company repurchased 951,800 units of its issued shares from the open market. The total shares repurchased are being held as treasury shares and carried out as cost in accordance with the requirement of Section 67A of Companies Act 1965. None of the treasury shares has been resold, cancelled or distributed as share dividends as at the date of this report. Month 2006 Jan – Feb March April May June July – Dec No. of shares purchased Lowest purchase price (RM) Highest purchase price (RM) Average purchase price (RM) Total purchase consideration (RM) — 19,900 56,100 — 42,800 — — 0.805 0.775 — 0.790 — — 0.830 0.783 — 0.790 — — 0.822 0.779 — 0.790 — — 16,349 43,758 — 33,812 — OPTION, WARRANTS OR CONVERTIBLE SECURITIES No options, warrants or Convertible Securities were exercised during the financial year. AMERICAN DEPOSITORY RECEIPT (“ADR”) OR GLOBAL DEPOSITORY RECEIPT (“GDR”) The Company did not sponsor any ADR or GDR programme during the financial year. SANCTIONS AND/OR PENALTIES There were no public sanctions and/or penalties imposed on the Company and its subsidiaries, Directors or management by any regulatory bodies during the financial year. NON-AUDIT FEES The amount of non-audit fees payable to the External Auditors by the Group for the financial year ended 31 December 2006 is as follows: Auditors KPMG Services Professional fee for services rendered in relation with the review of Statement on Internal Control RM 1,000 VARIATION IN RESULTS There was no material variation between the audited results for the financial year ended 31 December 2006 and the unaudited results previously released for the financial quarter ended 31 December 2006. PROFIT GUARANTEE The Company did not make any arrangement during the financial year which requires profit guarantee. 48 Johor Land Berhad laporan tahunan 2006 annual report additional disclosure information MATERIAL CONTRACTS There was no other material contracts entered into by the Company and/or its subsidiaries involving Directors and major shareholders’ interests subsisting at 31 December 2006 or entered into since the end of the previous financial year ended 31 December 2005 except as disclosed under Note 23 of the financial statements on page 86. At an Extraordinary General Meeting held on Tuesday, 24 May 2006, the Company obtained a Shareholders’ mandate to allow the Group to enter into recurrent related party transactions of a revenue or trading nature with the following parties:- Company JLand and/or Subsidiaries Actual Value of Transaction from 1 January to 31 December 2006 (RM’000) Transacting Party Nature of Transaction Relationship of transacting party KMB 1. Sale of fresh fruit bunches through KMB: – sales value – commission payable to KMB 2. Management of oil palm estate by KMB A subsidiary of JCorp, a major shareholder of JLand, by virtue of Section 6A of the Act^ 2,824 *56 *293 3,173 JLand and/or subsidiaries Damansara Assets Sdn Bhd Rental of office space to JLand and related expenses A wholly-owned subsidiary of JCorp, a major shareholder of JLand, by virtue of Section 6A of the Act^ *527 JLand and/or subsidiaries Pro Communication Services Sdn. Bhd. Advertising and promotion services provided to JLand Group A subsidiary of JCorp via Tajasukan Sdn Bhd^ JLand and/or subsidiaries Teraju Fokus Sdn Bhd Security services provided to JLand Group An associate company of JCorp, a major shareholder of JLand, by virtue of Section 6A of the Act^ JLand and/or subsidiaries JCorp Miscellaneous services rendered by JCorp (for example secretarial services, staff training, legal advisory, rental, internal audit services) JCorp is a major shareholder of JLand by virtue of Section 6A of the Act^ *110 JLand and/or subsidiaries JCorp Group Sale of houses, shops, shop offices and other types of development on land registered in the name of JCorp Group for which JLand has acquired from JCorp Group the said land. The entire proceeds of the sale accrue to JLand JCorp is a major shareholder of JLand by virtue of Section 6A of the Act^ 88 *39 *1,027 * Denotes amounts payable by JLand to transacting parties ^ Interested directors, Major shareholders and persons connected are as follows:(i) (ii) (iii) (iv) (v) (vi) Tan Sri Dato’ Muhammad Ali bin Hashim is the Chairman of JLand and Chief Executive of JCorp. He is also the Chairman of various other companies within the JCorp Group. Mohd Talhar bin Abdul Rahman is a Non Independent Non Executive Deputy Chairman of JLand and the Group Chairman of Messrs C H Williams Talhar & Wong Sdn. Bhd. that provides professional services to JLand via the JCorp Group. A.F.M Shafiqul Hafiz is the Managing Director of JLand and also holds directorships in various other companies within the JCorp Group. Lukman Bin Hj Abu Bakar is a Non Independent Non Executive Director of JLand. He also holds directorships in various other companies within the JCorp Group. Abdul Malek Bin Talib is an Executive Director of JLand. He also holds directorships in various other companies within the JCorp Group Yusof Bin Rahmat is a Non Independent Non Executive Director of JLand. He also holds directorships in various other companies within the JCorp Group. Johor Land Berhad 2006 annual report laporan tahunan 49 financial statements 50 Directors’ Report 51 Statement by Directors 55 Statutory Declaration 55 Report of The Auditors 56 Balance Sheets 57 Income Statements 58 Consolidated Statement of Changes in Equity 59 Statement of Changes in Equity 60 Cash Flow Statements 61 Notes to the Financial Statements 63 Johor Land Berhad laporan tahunan 2006 annual report directors’ report for the year ended 31 December 2006 The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the year ended 31 December 2006. PRINCIPAL ACTIVITIES The principal activities of the Company consist of the housing development and investment holdings. The principal activities of its subsidiaries are disclosed in Note 5 to the financial statements. There has been no significant change in the nature of these activities during the financial year. RESULTS Profit for the year Group RM Company RM 17,747,702 17,132,415 RESERVES AND PROVISIONS There were no material transfers to or from reserves and provisions during the financial year under review except as disclosed in the financial statements. DIVIDENDS Since the end of the previous financial year, the Company paid: (i) an interim dividend of 4% less tax per ordinary share totalling RM3,489,610 in respect of the year ended 31 December 2005 on 21 April 2006; (ii) a final dividend of 3% less tax per ordinary share totalling RM2,618,685 in respect of the year ended 31 December 2005 on 30 June 2006; and (iii) an interim dividend of 4% less tax per ordinary share totalling RM3,486,186 in respect of the year ended 31 December 2006 on 21 December 2006. The Directors do not recommend the payment of any final dividend in respect of the current financial year. DIRECTORS OF THE COMPANY Directors who served since the date of the last report are: Tan Sri Dato’ Muhammad Ali Hashim Mohd Talhar bin Abd. Rahman A.F.M. Shafiqul Hafiz Kua Hwee Sim Mahlil bin Omar Dato’ Hj. Hassan bin Hj. Mohd. Yunos Lukman bin Hj. Abu Bakar (appointed on 1 August 2006) Yusof bin Rahmat (appointed on 1 January 2007) Abdul Malek bin Talib (appointed on 1 January 2007) Md. Tamyes bin A. Rahim (resigned on 2 May 2006) Ahamad bin Mohamad (resigned on 1 August 2006) Azizah binti Abdul Rahman (resigned on 15 August 2006) Johor Land Berhad 2006 annual report laporan tahunan 51 directors’ report for the year ended 31 December 2006 DIRECTORS’ INTERESTS The holdings and deemed holdings in the ordinary shares of the Company and of its related corporations of those who were Directors at year end as recorded in the Register of Directors’ Shareholdings are as follows: Name of Directors COMPANY Tan Sri Dato’ Muhammad Ali Hashim A.F.M. Shafiqul Hafiz Kua Hwee Sim Mohd Talhar bin Abd. Rahman Name of Directors RELATED COMPANIES – Kulim (Malaysia) Berhad Tan Sri Dato’ Muhammad Ali Hashim Interest Direct Direct Direct Direct Interest Number of ordinary shares of RM1.00 each At At 1 January 31 December 2006 Bought Sold 2006 46,000 251,000 9,000 — 54,360 70,500 — 7,920 — (253,700) — — 100,360 67,800 9,000 7,920 Number of ordinary shares of RM0.50 each At At 1 January 31 December 2006 Bought Sold 2006 Direct Deemed 284,000 16,400 — 6,000 Mohd Talhar bin Abd. Rahman Direct 41,370 — (41,370) — A.F.M. Shafiqul Hafiz Direct 1,000 9,000 (9,000) 1,000 Name of Directors Interest — — 284,000 22,400 Number of ordinary shares of RM1.00 each At At 1 January 31 December 2006 Bought Sold 2006 – Sergam Berhad A.F.M. Shafiqul Hafiz Direct 1 — — 1 – Sindora Berhad Tan Sri Dato’ Muhammad Ali Hashim Direct 69,300 3,465 — 72,765 A.F.M. Shafiqul Hafiz Direct — 14,700 Direct Deemed 81,100 12,000 — — A.F.M. Shafiqul Hafiz Direct — 16,600 – QSR Brands Bhd A.F.M. Shafiqul Hafiz Direct — 1,000 – KPJ Healthcare Berhad Tan Sri Dato’ Muhammad Ali Hashim (14,700) — — (16,600) — — 81,100 12,000 — 1,000 None of the other Directors holding office at 31 December 2006 had any interest in the ordinary shares of the Company and of its related corporations during the year. 52 Johor Land Berhad laporan tahunan 2006 annual report directors’ report for the year ended 31 December 2006 DIRECTORS’ BENEFITS Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown in the financial statements) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest. There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate. ISSUE OF SHARES There were no changes in the authorised, issued and paid-up capital of the Company during the financial year. OPTIONS GRANTED OVER UNISSUED SHARES No options were granted to any person to take up unissued shares of the Company during the financial year. OTHER STATUTORY INFORMATION Before the balance sheets and income statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that: (i) all known bad debts have been written off and adequate provision has been made for doubtful debts, and (ii) all current assets have been stated at the lower of cost and net realisable value. At the date of this report, the Directors are not aware of any circumstances: (i) that would render the amount written off for bad debts, or the amount of the provision for doubtful debts in the Group and in the Company inadequate to any substantial extent, or (ii) that would render the value attributed to the current assets in the financial statements of the Group and of the Company misleading, or (iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate, or (iv) not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial statements of the Group and of the Company misleading. At the date of this report, there does not exist: (i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which secures the liabilities of any other person, or (ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year. No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due. In the opinion of the Directors, except for the effect of adoption of new Financial Reporting Standards as disclosed in Note 27 to the financial statements, the results of the operations of the Group and of the Company for the year ended 31 December 2006 have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of that financial year and the date of this report. Johor Land Berhad 2006 annual report laporan tahunan 53 directors’ report for the year ended 31 December 2006 AUDITORS The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment. Signed on behalf of the Board of Directors in accordance with a resolution of the Directors: Tan Sri Dato’ Muhammad Ali Hashim A.F.M. Shafiqul Hafiz Johor Bahru, Date: 5 March 2007 54 Johor Land Berhad laporan tahunan 2006 annual report statement by directors pursuant to Section 169(15) of the Companies Act, 1965 In the opinion of the Directors, the financial statements set out on pages 57 to 92, are drawn up in accordance with the provisions of the Companies Act, 1965 and applicable approved accounting standards for entities other than private entities issued by the Malaysian Accounting Standards Board so as to give a true and fair view of the state of affairs of the Group and of the Company at 31 December 2006 and of the results of their operations and cash flows for the financial year ended on that date. Signed in accordance with a resolution of the Directors: Tan Sri Dato’ Muhammad Ali Hashim A.F.M. Shafiqul Hafiz Johor Bahru, Date: 5 March 2007 statutory declaration pursuant to Section 169(16) of the Companies Act, 1965 I, Mariana binti Sidi, the officer primarily responsible for the financial management of JOHOR LAND BERHAD, do solemnly and sincerely declare that the financial statements set out on pages 57 to 92 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960. Subscribed and solemnly declared by the abovenamed in Johor Bahru in the State of Johor on 5 March 2007. Mariana binti Sidi Before me: R. RAMASAMY P.I.S. Commissioner for Oaths J058 Johor Land Berhad 2006 annual report laporan tahunan 55 report of the auditors to members of Johor Land Berhad We have audited the financial statements set out on pages 57 to 92. The preparation of the financial statements is the responsibility of the Company’s Directors. It is our responsibility to form an independent opinion, based on our audit, on the financial statements and to report our opinion to you, as a body, in accordance with Section 174 of the Companies Act, 1965 and for no other purpose. We do not assume responsibility to any other person for the content of this report. We conducted our audit in accordance with approved Standards on Auditing in Malaysia. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Directors, as well as evaluating the overall financial statements presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion: (a) (b) the financial statements are properly drawn up in accordance with the provisions of the Companies Act, 1965 and applicable approved accounting standards for entities other than private entities issued by the Malaysian Accounting Standards Board so as to give a true and fair view of: (i) the state of affairs of the Group and of the Company as at 31 December 2006 and of the results of their operations and cash flows for the financial year ended on that date; and (ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements of the Group and of the Company; and the accounting and other records and the registers required by the Companies Act, 1965 to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the said Act. We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’s financial statements are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations required by us for those purposes. The audit reports on the financial statements of the subsidiaries were not subject to any qualification and did not include any comment made under sub-section (3) of Section 174 of the Act. The previous years’ financial statements of the Group and of the Company were audited by another firm of accountants. KPMG Firm Number: AF 0758 Chartered Accountants Johor Bahru, Date: 5 March 2007 56 Johor Land Berhad laporan tahunan 2006 annual report Ang Ah Leck Partner Approval Number: 1991/09/07 (J) balance sheets as at 31 December 2006 Group Note Company 2006 RM 2005 RM 2006 RM 2005 RM 3,782,524 3,184,538 — 40,463,832 500,009,076 15,786,251 5,210,841 2,534,538 — 42,281,112 498,918,665 15,506,251 2,269,524 — 19,548,000 37,188,721 487,977,226 15,787,251 2,707,126 — 19,548,000 37,188,721 486,886,815 15,507,251 563,226,221 564,451,407 562,770,722 561,837,913 102,060,655 48,231,686 38,338,015 176,462 5,332,139 82,352,483 47,297,106 40,682,314 114,618 20,879,336 63,513,070 44,940,628 46,209,770 176,462 2,540,653 58,115,107 45,752,395 50,831,839 114,618 1,171,498 Total current assets 194,138,957 191,325,857 157,380,583 155,985,457 Total assets 757,365,178 755,777,264 720,151,305 717,823,370 Equity Share capital Reserves Retained earnings 122,000,000 369,115,511 148,846,545 122,000,000 369,210,127 140,693,324 122,000,000 369,115,511 116,250,987 122,000,000 369,210,127 108,713,053 Total equity attributable to shareholders of the Company Minority interests 639,962,056 — 631,903,451 72,413 607,366,498 — 599,923,180 — Assets Property, plant and equipment Investment properties Investments in subsidiaries Investments in associates Land held for future development Deferred tax assets 3 4 5 6 7 8 Total non-current assets Property development projects Inventories Trade and other receivables Short term investments Cash and cash equivalents 9 10 11 12 13 Total equity 14 639,962,056 631,975,864 607,366,498 599,923,180 Liabilities Loans and borrowings/Total non-current liabilities 15 61,142,084 53,486,282 52,462,084 53,477,067 16 15 15,380,467 40,573,684 306,887 22,269,906 46,735,513 1,309,699 23,665,157 36,573,684 83,882 21,216,863 42,719,713 486,547 56,261,038 70,315,118 60,322,723 64,423,123 Total liabilities 117,403,122 123,801,400 112,784,807 117,900,190 Total equity and liabilities 757,365,178 755,777,264 720,151,305 717,823,370 Trade and other payables Loans and borrowings Taxation Total current liabilities The accompanying notes form an integral part of the financial statements. Johor Land Berhad 2006 annual report laporan tahunan 57 income statements for the year ended 31 December 2006 Group Note Revenue Cost of sales 17 2006 RM Company 2005 RM 2006 RM 2005 RM 74,660,253 (43,354,848) 88,783,157 (54,788,252) 78,689,709 (37,698,051) 88,511,676 (47,647,791) 31,305,405 1,901,947 (2,655,941) (11,183,645) (358,423) 33,994,905 1,683,436 (3,800,726) (9,589,087) (1,628,656) 40,991,658 1,645,512 (2,628,775) (9,701,152) (1,110) 40,863,885 381,288 (3,774,011) (7,954,644) (1,503,823) 18 19,009,343 281,807 (6,068,490) 20,659,872 413,316 (5,616,097) 30,306,133 38,678 (5,858,784) 28,012,695 22,721 (5,450,969) 19 13,222,660 15,457,091 24,486,027 22,584,447 8,876,148 — 7,822,721 (1,019,100) — — — — 22,098,808 (4,423,519) 22,260,712 (5,805,172) 24,486,027 (7,353,612) 22,584,447 (7,861,574) Profit for the year 17,675,289 16,455,540 17,132,415 14,722,873 Attributable to: Shareholders of the Company Minority interest 17,747,702 (72,413) 16,567,113 (111,573) 17,132,415 — 14,722,873 — Profit for the year 17,675,289 16,455,540 17,132,415 14,722,873 Gross profit Other income Distribution expenses Administration expenses Other expenses Results from operating activities Interest income Finance costs Operating profit Share of profit after tax and minority interest of equity accounted associates Amortisation of premium on acquisition of associates Profit before tax Tax expense 20 Basic earnings per ordinary share (sen) 21 14.66 13.67 Diluted earnings per ordinary share (sen) 21 4.42 4.16 The accompanying notes form an integral part of the financial statements. 58 Johor Land Berhad laporan tahunan 2006 annual report consolidated statement of changes in equity for the year ended 31 December 2006 Note Group At 1 January 2005 – As previously reported – Effect of adopting FRS 132 At 1 January 2005, restated Profit for the year Dividends to shareholders At 31 December 2005, restated Profit for the year Treasury shares acquired Dividends to shareholders At 31 December 2006 Total RM Minority interest RM Total equity RM 346,726,299 272,099,649 183,986 — 346,910,285 272,099,649 27 122,000,000 — 78,581,839 — 19,288,797 272,099,649 (760,158) 127,615,821 — — 22 122,000,000 — — 78,581,839 — — 291,388,446 — — (760,158) 127,615,821 618,825,948 — 16,567,113 16,567,113 — (3,489,610) (3,489,610) 122,000,000 78,581,839 291,388,446 (760,158) 140,693,324 631,903,451 72,413 631,975,864 27 122,000,000 — 78,581,839 — 19,288,797 272,099,649 (760,158) 135,805,760 — 4,887,564 354,916,238 276,987,213 72,413 — 354,988,651 276,987,213 22 122,000,000 — — — 78,581,839 — — — 291,388,446 — — — (760,158) 140,693,324 631,903,451 — 17,747,702 17,747,702 (94,616) — (94,616) — (9,594,481) (9,594,481) 122,000,000 78,581,839 291,388,446 (854,774) 148,846,545 At 31 December 2005, restated At 31 December 2005 – As previously reported – Effect of adopting FRS 132 Share capital RM Attributable to shareholders of the Company Non-distributable Convertible unsecured Share loan stocks Distributable premium -equity Treasury Retained reserve portion shares earnings RM RM RM RM 183,986 619,009,934 (111,573) 16,455,540 — (3,489,610) 72,413 631,975,864 (72,413) 17,675,289 — (94,616) — (9,594,481) 639,962,056 — 639,962,056 The accompanying notes form an integral part of the financial statements. Johor Land Berhad 2006 annual report laporan tahunan 59 statement of changes in equity for the year ended 31 December 2006 Note Company At 1 January 2005 – As previously reported – Effect of adopting FRS 127 — Effect of adopting FRS 132 At 1 January 2005, restated Profit for the year Dividends to shareholders At 31 December 2005, restated Profit for the year Treasury shares acquired Dividends to shareholders At 31 December 2006 Johor Land Berhad laporan tahunan 2006 annual report Revaluation reserve RM Total equity RM 2,530,027 102,479,790 324,120,295 (2,530,027) (5,000,000) (7,530,027) — — 272,099,649 122,000,000 — — 78,581,839 19,288,797 — — — 272,099,649 (760,158) — — 22 122,000,000 — — 78,581,839 291,388,446 — — — — (760,158) — — — — — 122,000,000 78,581,839 291,388,446 (760,158) — 108,713,053 599,923,180 27 27 122,000,000 — — 78,581,839 19,288,797 — — — 272,099,649 (760,158) — — 2,530,027 108,825,489 330,465,994 (2,530,027) (5,000,000) (7,530,027) — 4,887,564 276,987,213 22 122,000,000 — — — 78,581,839 291,388,446 — — — — — — (760,158) — (94,616) — — 108,713,053 599,923,180 — 17,132,415 17,132,415 — — (94,616) — (9,594,481) (9,594,481) 122,000,000 78,581,839 291,388,446 (854,774) — 116,250,987 607,366,498 The accompanying notes form an integral part of the financial statements. 60 Distributable Retained earnings RM Treasury shares RM 27 27 At 31 December 2005, restated At 31 December 2005 – As previously reported – Effect of adopting FRS 127 – Effect of adopting FRS 132 Share capital RM Non-distributable Convertible unsecured Share loan stockspremium equity reserve portion RM RM 97,479,790 588,689,917 14,722,873 14,722,873 (3,489,610) (3,489,610) cash flow statements for the year ended 31 December 2006 Group Company 2006 RM 2005 RM 2006 RM 2005 RM 22,098,808 22,260,712 24,486,027 22,584,447 — 276,920 565,037 6,068,490 — — 14,159 8,844 (2,371) (3,018) — (281,807) (8,876,148) 1,019,100 — 805,610 5,616,097 — 1,623,786 — 4,869 (5,641) (12,612) (1,065,754) (413,316) (7,822,721) — — 463,295 5,858,784 — — — 1,109 (2,371) (3,018) — (38,678) — — — 499,493 5,450,969 1,500,000 — — 3,823 (5,641) (12,612) — (22,721) — Operating profit before changes in working capital Change in inventories Change in trade and other receivables Change in trade and other payables Change in property development projects 19,868,914 (934,580) 2,349,208 (6,889,439) (19,708,172) 22,010,130 (2,792,119) 1,960,206 (12,641,916) (6,026,487) 30,765,148 811,767 4,622,069 2,448,294 (5,397,963) 29,997,758 (8,869,753) (15,894,637) 2,015,583 3,531,651 Cash (used in)/generated from operations Interest received Dividend received Interest paid Tax paid (5,314,069) 281,807 10,825,175 (3,000,198) (5,711,238) 2,509,814 413,316 9,020,979 (2,688,915) (6,013,889) 33,249,315 38,678 — (2,790,492) (8,036,277) 10,780,602 22,721 — (2,523,787) (9,006,407) (2,918,523) 3,241,305 22,461,224 (726,871) (146,081) (131,750) (422,353) (1,090,411) 59,438 — 363,528 2,371 (490,168) — (145,095) 2,091,050 — 1,837,500 143,024 4,341 (26,802) — (422,353) (1,090,411) — — 363,527 2,371 (259,146) — (145,095) 2,091,050 — — 1,980,524 4,341 (1,365,258) 3,440,652 (1,173,668) 3,671,674 CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments for:Amortisation of premium on acquisition of an associate Change in fair value on investment property Depreciation Finance costs Impairment loss in investment in a subsidiary Loss on disposal of investment in an associate Loss on disposal of property, plant and equipment Property, plant and equipment written off Gross dividends from quoted shares Gain on disposal of quoted investments Impairment loss on property, plant and equipment Interest income Share in results of associate Net cash (used in)/from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment Acquisition of investment in associate Acquisition of quoted investment Land held for future developments Proceeds from disposal of property, plant and equipment Proceeds from disposal of investment in an associate Proceeds from disposal of quoted investments Dividends received Net cash (used in)/from investing activities Johor Land Berhad 2006 annual report laporan tahunan 61 cash flow statements for the year ended 31 December 2006 Group 2006 RM CASH FLOWS FROM FINANCING ACTIVITIES Payment of finance lease liabilities Net proceeds/(repayment) of borrowings Drawdown of bridging loan Dividends paid to shareholders of the Company Interest paid on convertible unsecured loan stocks Treasury shares Company 2005 RM 2006 RM 2005 RM (284,465) 16,414 8,680,000 (9,594,481) (4,023,288) (94,616) (272,439) (4,093,817) — (5,631,617) (3,290,959) — (259,450) 16,414 — (9,594,481) (4,023,288) (94,616) (256,639) (4,093,817) — (5,631,617) (3,290,959) — (5,300,436) (13,288,832) (13,955,421) (13,273,032) Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at 1 January (9,584,217) (16,536,147) (6,606,875) (9,929,272) 7,332,135 (36,243,985) (10,328,229) (25,915,756) Cash and cash equivalents at 31 December (26,120,364) (16,536,147) (28,911,850) (36,243,985) 3,611,550 1,720,589 (31,452,503) 8,249,276 12,630,060 (37,415,483) 2,540,653 — (31,452,503) 1,171,498 — (37,415,483) (26,120,364) (16,536,147) (28,911,850) (36,243,985) Net cash used in financing activities Cash and cash equivalents included in the cash flow statements comprise the following balance sheet amounts: Cash and bank balances Fixed deposits with a licensed banks Bank overdrafts The accompanying notes form an integral part of the financial statements. 62 Johor Land Berhad laporan tahunan 2006 annual report notes to the financial statements Johor Land Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Board of Bursa Malaysia Securities Berhad. The addresses of its registered office and principal place of business are as follows: Registered office 13th Floor, Menara Johor Corporation KOTARAYA 80000 Johor Bahru Johor Darul Takzim Principal place of business 10th Floor KOMTAR Jalan Wong Ah Fook 80000 Johor Bahru Johor Darul Takzim The consolidated financial statements as at and for the year ended 31 December 2006 comprise the Company and its subsidiaries (together referred to as the Group) and the Group’s interest in associates. The principal activities of the Company consist of the housing development and investment holdings. The principal activities of its subsidiaries are disclosed in Note 5. The holding and ultimate holding corporation during the financial year is Johor Corporation, a body corporate established under the Johor Corporation Enactment (No. 4 of 1968) (as amended by Enactment No. 5 of 1995). 1. BASIS OF PREPARATION (a) Statement of compliance The financial statements of the Group and of the Company have been prepared in accordance with applicable approved accounting standards for entities other than private entities issued by the Malaysian Accounting Standards Board (MASB), accounting principles generally accepted in Malaysia and the provisions of the Companies Act, 1965. The MASB has issued a number of new and revised Financial Reporting Standards (FRSs) or Interpretation that are effective for annual periods beginning on or after 1 January 2006 or available for early adoption. The following new FRSs have not been applied in preparing these financial statements: (i) FRS 117, Leases – This FRS is effective for annual periods beginning on or after 1 October 2006. By virtue of the exemption in paragraph 67B of FRS 117, the impact of applying FRS 117 on the financial statements upon first adoption of this standard as required by paragraph 30(b) of FRS 108, Accounting Policies, Changes in Accounting Estimates and Errors is not disclosed; (ii) FRS 124, Related Party Disclosures – This FRS is effective for annual periods beginning on or after 1 October 2006. By virtue of the exemption in paragraph 22A of FRS 124, the impact of applying FRS 124 on the financial statements upon first adoption of this standard as required by paragraph 30(b) of FRS 108 is not disclosed; (iii) FRS 139, Financial Instruments: Recognition and Measurement – This FRS has been issued by the MASB but the MASB has yet to announce the effective date of this standard. By virtue of the exemption in paragraph 103AB of FRS 139, the impact of applying FRS 139 on the financial statements upon first adoption of this standard as required by paragraph 30(b) of FRS 108 is not disclosed; (iv) Amendment to FRS 1192004, Employee Benefits – Actuarial Gains and Losses, Group Plans and Disclosures – Certain amendments made to FRS 1192004 are effective for annual periods beginning on or after 1 January 2007. The adoption of these amendments does not have any significant impact on the financial statements of the Group and of the Company in the period of initial application; and (v) FRS 6, Exploration for and Evaluation of Mineral Resources – This FRS is effective for annual periods beginning on or after 1 January 2007. This standard is not applicable to the Group and the Company. Johor Land Berhad 2006 annual report laporan tahunan 63 notes to the financial statements 1. BASIS OF PREPARATION (continued) (a) Statement of compliance (continued) The Group plans to apply FRS 117, FRS 124, and the Amendment to FRS 1192004 initially for the annual period beginning 1 January 2007. The effects of adopting the new/revised FRSs in 2006 are set out in Note 27. The financial statements were approved by the Board of Directors on 5 March 2007. (b) Basis of measurement The financial statements have been prepared on the historical cost basis except for investment properties as explained in the accounting policy note. (c) Functional and presentation currency These financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional currency. All financial information are presented in RM, unless otherwise stated. (d) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are described in the following notes: Note 2r(iii) – revenue recognition on property development Note 4 – valuation of investment properties 2. SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been applied consistently by Group entities, unless otherwise stated. Certain comparative amounts have been reclassified or re-presented to conform to the current year’s presentation (see Note 28). In addition, the comparative financial statements have been restated to take into account the effect of adopting FRS 132, Financial Instrument: Disclosure and Presentation. (a) Basis of consolidation (i) Subsidiaries Subsidiaries are entities, including unincorporated entities, controlled by the Group. Control exists when the Group has the ability to exercise its power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Investments in subsidiaries are stated in the Company’s balance sheet at cost less impairment losses, unless the investment is classified as held for sale. (ii) Associates Associates are entities, including unincorporated entities, in which the Group has significant influence, but not control, over the financial and operating policies. Associates are accounted for in the consolidated financial statements using the equity method unless it is classified as held for sale (or included in a disposal group that is classified as held for sale). The consolidated financial statements include the Group’s share of the income and expenses of the equity accounted associates, after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. 64 Johor Land Berhad laporan tahunan 2006 annual report notes to the financial statements 2. SIGNIFICANT ACCOUNTING POLICIES (continued) (a) Basis of consolidation (continued) (ii) Associates (continued) When the Group’s share of losses exceeds its interest in an equity accounted associate, the carrying amount of that interest (including any long-term investments) is reduced to nil and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. Investments in associates are stated in the Company’s balance sheet at cost less impairment losses. (iii) Minority interest Minority interests at the balance sheet date, being the portion of the net assets of subsidiaries attributable to equity interests that are not owned by the Company, whether directly or indirectly through subsidiaries, are presented in the consolidated balance sheet and statement of changes in equity within equity, separately from equity attributable to the equity shareholders of the Company. Minority interests in the results of the Group are presented on the face of the consolidated income statement as an allocation of the total profit or loss for the year between minority interests and the equity shareholders of the Company. Where losses applicable to the minority exceed the minority’s interest in the equity of a subsidiary, the excess, and any further losses applicable to the minority, are charged against the Group’s interest except to the extent that the minority has a binding obligation to, and is able to, make additional investment to cover the losses. If the subsidiary subsequently reports profits, the Group’s interest is allocated all such profits until the minority’s share of losses previously absorbed by the Group has been recovered. (b) Foreign currency (i) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in the income statement. (ii) Operations denominated in functional currencies other than Ringgit Malaysia The assets and liabilities of operations in functional currencies other than RM, including goodwill and fair value adjustments arising on acquisition, are translated to RM at exchange rates at the balance sheet date. The income and expenses of foreign operations are translated to RM at exchange rates at the dates of the transactions. On disposal, accumulated translation differences are recognised in the consolidated income statement as part of the gain or loss on sale. (c) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. (ii) Reclassification to investment property Property that is being constructed for future use as investment property is accounted for as property, plant and equipment until construction or development is complete, at which time it is remeasured to fair value and reclassified as investment property. Any gain or loss arising on remeasurement is recognised in the income statement. When the use of a property changes from owner-occupied to investment property, the property is remeasured to fair value and reclassified as investment property. Any gain arising on remeasurement is recognised directly in equity. Any loss is recognised immediately in the income statement. Johor Land Berhad 2006 annual report laporan tahunan 65 notes to the financial statements 2. SIGNIFICANT ACCOUNTING POLICIES (continued) (c) Property, plant and equipment (continued) (iii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The carrying amount of those parts that are replaced is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in the income statement as incurred. (iv) Depreciation Depreciation is recognised in the income statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Long and short leasehold land is amortised based on straight-line basis over the leasehold periods of 30 to 90 years respectively. Freehold land is not depreciated. The estimated useful lives for the current and comparative periods are as follows: Buildings Plant and machinery Furniture, fittings and equipment Motor vehicles 2% – 12% 12% – 20% 20% – 25% and replacement basis 20% The plant and machinery belonging to a subsidiary company is depreciated based on the proportion of production units for the financial year to the units of production expected over the life of the plant and machinery. The depreciable amount is determined after deducting the residual value. Depreciation methods, useful lives and residual values are reassessed at the reporting date. (d) Leased assets Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Other leases are operating leases and, except for leasehold land classified as investment property, the leased assets are not recognised on the Group’s balance sheet. Property interest held under an operating lease, which is held to earn rental income or for capital appreciation or both, is classified as investment property. (e) Intangible assets Goodwill Goodwill (negative goodwill) arises on the acquisition of subsidiaries and associates. For acquisitions prior to 1 January 2006, goodwill represents the excess of the cost of the acquisition over the Group’s interest in the fair values of the net identifiable assets and liabilities. With the adoption of FRS 3 beginning 1 January 2006, goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree. Goodwill is allocated to cash-generating units and is tested annually for impairment or more frequently if events or changes in circumstances indicate that it might be impaired. In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment. The entire carrying amount of the investment is tested for impairment when there is objective evidence of impairment. Before adoption of FRS 3, goodwill was measured at cost less accumulated amortisation and impairment losses. Goodwill was either written off in the year of acquisition or capitalised and amortised from the date of initial recognition over its estimated useful life of not more than 20 years or the expected useful life, whichever is shorter. Impairment tests on goodwill were performed when there were indications of impairment. Negative goodwill represents the excess of the fair values of the Group’s share of identifiable net assets acquired over the acquisition cost. It was either capitalised in the year of acquisition or capitalised and amortised to income statements evenly through the income statements over a period of five (5) years or estimated useful life, whichever is shorter. 66 Johor Land Berhad laporan tahunan 2006 annual report notes to the financial statements 2. SIGNIFICANT ACCOUNTING POLICIES (continued) (e) Intangible assets (continued) Goodwill (continued) Following the adoption of FRS 3, goodwill is measured at cost and is no longer amortised but tested for impairment at least annually or more frequently when there is objective evidence of impairment. When the excess is negative (negative goodwill), it is recognised immediately in the income statement. The effects of adopting FRS 3 are set out in Note 27. (f) Investments in debt and equity securities All current investments are carried at the lower of cost and market value, determined on an aggregate portfolio basis by category of investments. (g) Investment properties Investment properties are properties which are owned or held under a leasehold interest to earn rental income or for capital appreciation or for both. These include land held for a currently undetermined future use. Properties that are occupied by the companies in the Group are accounted for as owner-occupied rather than as investment properties. In the previous years, all investment property were included in property, plant and equipment stated at cost. Following the adoption of FRS 140, Investment Property, all investment property are measured initially at cost and subsequently at fair value with any change therein recognised in the income statement. When an item of property, plant and equipment is transferred to investment property following a change in its use, any difference arising at the date of transfer between the carrying amount of the item immediately prior to transfer and its fair value is recognised directly in equity as a revaluation of property, plant and equipment. However, if a fair value gain reverses a previous impairment loss, the gain is recognised in the income statements. Upon disposal of an investment property, any surplus previously recorded in equity is transferred to retained earnings; the transfer is not made through the income statement. When an item of inventory or property development is transferred to investment property following a change in its use, any difference arising at the date of transfer between the carrying amount of the item immediately prior to the transfer and its fair value is recognised in the income statement. When the use of a property changes such that it is reclassified as property, plant and equipment or inventories, its fair value at the date of reclassification becomes its cost for subsequent accounting. An external, independent valuation company, having appropriate recognised professional qualifications and recent experience in the location and category of property being valued, values the Group’s investment property portfolio every year. The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. In the absence of current prices in an active market, the valuations are prepared by considering the aggregate of the estimated cash flows expected to be received from renting out the property. A yield that reflects the specific risks inherent in the net cash flows then is applied to the net annual cash flows to arrive at the property valuation. Valuations reflect, where appropriate: the type of tenants actually in occupation or responsible for meeting lease commitments or likely to be in occupation after letting vacant accommodation, and the market’s general perception of their creditworthiness; the allocation of maintenance and insurance responsibilities between the Group and the lessee; and the remaining economic life of the property. When rent reviews or lease renewals are pending with anticipated reversionary increases, it is assumed that all notices and where appropriate counter-notices have been served validly and within the appropriate time. (h) Inventories Inventories of completed houses are stated at the lower of cost and net realisable value. Cost is mainly determined on specific identification basis and includes the cost of freehold/leasehold land and construction, and the appropriate development overheads. Inventories, other than completed houses, are stated at the lower of cost (determined on the ‘first-in, first-out’ basis and the weighted-average method) and net realisable value. The cost of raw materials, consumables and other inventories comprise the original cost of purchase plus the cost of bringing the inventories to their present location. The costs of work-in-progress and finished goods consist of cost of raw materials, direct labour and an appropriate proportion of the manufacturing overheads. Net realisable value represents the estimated selling price in the ordinary course of business less selling and distribution costs and all other estimated costs of completion and selling expenses. Johor Land Berhad 2006 annual report laporan tahunan 67 notes to the financial statements 2. SIGNIFICANT ACCOUNTING POLICIES (continued) (i) Property development projects Property development projects consist of land held for future development and current development expenditure which comprise construction and other related development costs including borrowings costs, is stated at cost less accumulated impairment losses. The Group and the Company consider as current asset that proportion of property development projects on which sales have been launched and/or the project is expected to be completed within the normal operating cycle of two to three years. Cost of property development projects classified as current assets are stated at the lower of cost and net realisable value. When the outcome of a property development project cannot be estimated reliably, property development revenue is recognised to the extent of property development costs incurred that is probable of recovery. Any anticipated loss on a property development project (including costs to be incurred over the defects liability period), is recognised as an expense immediately. Accrued billings represent the excess of property development revenue recognised in the income statements over billings to purchasers while progress billings represent the excess of billings to purchasers over property development revenue recognised in the income statements. (j) Receivables Receivables are initially recognised at their cost when the contractual right to receive cash or another financial asset from another entity is established. Subsequent to initial recognition, receivables are stated at cost less allowance for doubtful debts. Receivables are not held for the purpose of trading. (k) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid investments which have an insignificant risk of changes in value. For the purpose of the cash flow statement, cash and cash equivalents are presented net of bank overdrafts and pledged deposits. (l) Impairment of assets The carrying amount of assets, other than inventories, deferred tax assets, investment properties that is measured at fair value and financial assets (other than investments in subsidiaries and associates), are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, recoverable amount is estimated at each reporting date. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount unless the asset is carried at a revalued amount, in which case the impairment loss is recognised directly against any revaluation surplus for the asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same asset. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups. Impairment losses are recognised in the income statement. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (groups of units) on a pro rata basis. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to the income statement in the year in which the reversals are recognised, unless it reverses an impairment loss on a revalued asset, in which case it is credited directly to revaluation surplus. Where an impairment loss on the same revalued asset was previously recognised in the income statement, a reversal of that impairment loss is also recognised in the income statement. 68 Johor Land Berhad laporan tahunan 2006 annual report notes to the financial statements 2. SIGNIFICANT ACCOUNTING POLICIES (continued) (m) Share capital (i) Shares issue expenses Incremental costs directly attributable to issue of shares and share options classified as equity are recognised as a deduction from equity. (ii) (n) Repurchase of share capital When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributable costs, is recognised as a deduction from equity. Repurchased shares that are not subsequently cancelled are classified as treasury shares and are presented as a deduction from total equity. Compound financial instruments Compound financial instruments issued by the Group comprise convertible notes that can be converted to share capital at the option of the holder and the number of shares to be issued does not vary with changes in their fair value. The liability component of a compound financial instrument is recognised initially at the fair value of a similar liability that does not have an equity conversion option. The equity component is recognised initially at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts. Subsequent to initial recognition, the liability component of a compound financial instruments is measured at amortised cost using the effective interest method. The equity component of a compound financial instruments is not remeasured subsequent to initial recognition. In the International Accounting Standards Board (“IASB”) meeting in June 2006, the IASB stressed that IAS 32 requires an assessment of the substance of the contractual agreement. It does not, however, require or permit factors not within the contractual arrangement to be taken into consideration in classifying a financial instrument. The IASB further confirmed that a contractual obligation could be established explicitly or indirectly, but it must be established through the terms and conditions of the instrument. In view of the clarifications provided by IASB, the Company reassessed the liability component of the Convertible Unsecured Loan Stocks (“CULS”) which resulted in a restatement as described in Note 27 to the financial statements. (o) Loans and borrowings Loans and borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the income statement over the period of the loans and borrowings using the effective interest method. (p) Employee benefits Short term employee benefits Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are measured on an undiscounted basis and are expensed as the related service is provided. A provision is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. The Group’s contribution to the Employee’s Provident Fund are charged to the income statements in the year to which they relate. Once the contributions have been paid, the Group has no further payment obligations. (q) Payables Payables are measured initially and subsequently at cost. Payables are recognised when there is a contractual obligation to deliver cash or another financial asset to another entity. Johor Land Berhad 2006 annual report laporan tahunan 69 notes to the financial statements 2. SIGNIFICANT ACCOUNTING POLICIES (continued) (r) Revenue (i) Goods sold Revenue from the sale of goods is measured at fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods. (ii) Rental income Rental income from investment property is recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. (iii) Revenue from property development Revenue from property development activities is recognised based on the stage of completion measured by reference to surveys of work performed. Where the financial outcome of a property development activity cannot be reliably estimated, property development revenue is recognised only to the extent of property development costs incurred that is probable will be recoverable, and property development costs on the development units sold are recognised as an expense in the period in which they are incurred. Any expected loss on a development project, including costs to be incurred over the defects liability period, is recognised immediately in the income statement. (iv) Dividend income Dividend income is recognised when the right to receive payment is established. (s) Lease payments Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed. (t) Interest income and borrowing costs Interest income is recognised as it accrues, using the effective interest method. All borrowing costs are recognised in the income statement using the effective interest method, in the period in which they are incurred except to the extent that they are capitalised as being directly attributable to the property development projects which necessarily takes a substantial period of time to be prepared for its intended use or sale. The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or completed. (u) Tax expense Tax expense comprises current and deferred tax. Tax expense is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. 70 Johor Land Berhad laporan tahunan 2006 annual report notes to the financial statements 2. SIGNIFICANT ACCOUNTING POLICIES (continued) (u) Tax expense (continued) Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit (tax loss). Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax liability is recognised for all taxable temporary differences. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Additional taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related dividend is recognised. 3. (v) Earnings per share The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise convertible notes. (w) Segment reporting A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. PROPERTY, PLANT AND EQUIPMENT Land and buildings RM Plant and machinery RM Office equipment, furniture and fittings RM 7,070,569 139,286 — 1,047,289 — — 1,112,132 205,581 (57,469) 1,848,977 145,301 — 11,078,967 490,168 (57,469) At 31 December 2005 Effect of adopting FRS 140 7,209,855 (3,391,780) 1,047,289 — 1,260,244 — 1,994,278 — 11,511,666 (3,391,780) At 31 December 2005, restated Additions Disposals Transfer to investment properties Written off 3,818,075 — — (1,256,466) — 1,047,289 — (62,000) — — 1,260,244 103,081 (28,641) — (54,929) 1,994,278 43,000 (101,813) — — 8,119,886 146,081 (192,454) (1,256,466) (54,929) At 31 December 2006 2,561,609 985,289 1,279,755 1,935,465 6,762,118 Group Cost At 1 January 2005 Additions Written off Motor vehicles RM Total RM Johor Land Berhad 2006 annual report laporan tahunan 71 notes to the financial statements 3. 72 PROPERTY, PLANT AND EQUIPMENT (continued) Land and buildings RM Plant and machinery RM Office equipment, furniture and fittings RM Group (continued) Depreciation At 1 January 2005 Depreciation charge Written off 1,125,432 271,822 — 318,920 3,324 — 713,862 191,997 (52,600) 855,063 338,467 — 3,013,277 805,610 (52,600) At 31 December 2005 Effect of adopting FRS 140 1,397,254 (857,242) 322,244 — 853,259 — 1,193,530 — 3,766,287 (857,242) At 31 December 2005, restated Depreciation charge Disposals Transfer to investment properties Written off 540,012 80,642 — (329,546) — 322,244 — (19,080) — — 853,259 188,187 (25,112) — (46,085) 1,193,530 296,208 (74,665) — — 2,909,045 565,037 (118,857) (329,546) (46,085) At 31 December 2006 291,108 303,164 970,249 1,415,073 2,979,594 Carrying amounts At 31 December 2006 2,270,501 682,125 309,506 520,392 3,782,524 At 31 December 2005 3,278,063 725,045 406,985 800,748 5,210,841 Land and buildings RM Office equipment, furniture and fittings RM Motor vehicles RM Total RM Company Cost At 1 January 2005 Additions Written off 1,763,280 3,510 — 994,306 110,335 (47,711) 1,726,905 145,301 — 4,484,491 259,146 (47,711) At 31 December 2005/1 January 2006 Additions Written off 1,766,790 — — 1,056,930 26,802 (9,600) 1,872,206 — — 4,695,926 26,802 (9,600) At 31 December 2006 1,766,790 1,074,132 1,872,206 4,713,128 Johor Land Berhad laporan tahunan 2006 annual report Motor vehicles RM Total RM notes to the financial statements 3. PROPERTY, PLANT AND EQUIPMENT (continued) Land and buildings RM Office equipment, furniture and fittings RM Motor vehicles RM Total RM Company (continued) Depreciation At 1 January 2005 Depreciation charge Written off 129,672 15,444 — 621,029 164,745 (43,888) 782,494 319,304 — 1,533,195 499,493 (43,888) At 31 December 2005/1 January 2006 Depreciation charge Written off 145,116 15,444 — 741,886 161,286 (8,491) 1,101,798 286,565 — 1,988,800 463,295 (8,491) At 31 December 2006 160,560 894,681 1,388,363 2,443,604 Carrying amounts At 31 December 2006 1,606,230 179,451 483,843 2,269,524 At 31 December 2005 1,621,674 315,044 770,408 2,707,126 Group Company 2006 RM 2005 RM 2006 RM 2005 RM 1,380,027 — 890,474 1,380,027 108,389 1,789,647 984,677 — 621,553 984,677 — 636,997 2,270,501 3,278,063 1,606,230 1,621,674 Carrying amounts of land and buildings At cost Freehold land Short term leasehold land Buildings 4. INVESTMENT PROPERTIES Group 2006 RM 2005 RM At 1 January Transfer from property, plant and equipment Change in fair value 2,534,538 926,920 (276,920) 2,534,538 — — At 31 December 3,184,538 2,534,538 93,600 2,021,261 1,069,677 — 2,021,261 513,277 3,184,538 2,534,538 Included in the above are: Leasehold land with unexpired lease period of: – less than 50 years – more than 50 years Factory buildings Johor Land Berhad 2006 annual report laporan tahunan 73 notes to the financial statements 4. INVESTMENT PROPERTIES (continued) The Group’s investment properties were revalued in May 2006 and January 2007 respectively by independent professional qualified valuers using an open market value method. Investment properties comprise two pieces of leasehold land and factory buildings. One of the leasehold land and factory building is leased to a third party, while the other piece is currently vacant. No contingent rents are charged. 5. INVESTMENTS IN SUBSIDIARIES Company 2006 RM Unquoted investment – at cost Less: Impairment loss 2005 RM 21,048,000 (1,500,000) 21,048,000 (1,500,000) 19,548,000 19,548,000 The subsidiaries, all incorporated in Malaysia are as follows: 6. Effective ownership interest 2006 2005 % % Name of Company Principal activities Advance Development Sdn. Bhd. Property developer 100 100 Pembinaan Prefab Sdn. Bhd. Intended to be a property developer 100 100 Johor Land Manufacturing Sdn. Bhd. Manufacturer of metal door frames and trading of building materials 75 75 INVESTMENTS IN ASSOCIATES Group 2006 RM Unquoted shares in associates At cost Dividend received out of pre-acquisition profits Share of post-acquisition results of associates Company 2005 RM 2006 RM 2005 RM 45,712,420 (8,523,699) 3,275,111 45,712,420 (8,523,699) 5,092,391 45,712,420 (8,523,699) — 45,712,420 (8,523,699) — 40,463,832 42,281,112 37,188,721 37,188,721 Summary financial information on the associates: Name of company Country incorporation 2006 Revertex (Malaysia) Sdn. Bhd. Malaysia Malaya Bangla Metal Fabricators Joint Venture Company Limited 2005 Revertex (Malaysia) Sdn. Bhd. 74 Johor Land Berhad laporan tahunan 2006 annual report Effective ownership interest (%) Revenue (100%) RM’000 Profit/ (Loss) (100%) RM’000 Total assets (100%) RM’000 Total liabilities (100%) RM’000 30.07 470,200 29,904 254,529 (166,695) Bangladesh 50.00 — 166 (123) Malaysia 30.07 433,181 238,349 (144,530) (232) 25,568 notes to the financial statements 6. INVESTMENTS IN ASSOCIATES (continued) Contingent liabilities Group Share of associates’ contingent liabilities incurred jointly with other investors – Bank guarantees for trade financing to suppliers (unsecured) 7. 2006 RM’000 2005 RM’000 1,122 1,138 LAND HELD FOR FUTURE DEVELOPMENT Group Company 2006 RM 2005 RM 2006 RM 2005 RM At cost Freehold land Long leasehold land 466,442,798 32,475,867 460,618,208 42,210,730 454,410,948 32,475,867 447,361,653 42,210,730 At 1 January Additions Disposal 498,918,665 502,828,938 486,886,815 2,068,027 — 2,068,027 (977,616) (2,091,050) (977,616) 489,572,383 — (2,091,050) 500,009,076 500,737,888 487,977,226 487,481,333 — — (1,224,705) (594,518) — — — (594,518) 468,077,902 31,931,174 466,442,798 32,475,867 456,046,052 31,931,174 454,410,948 32,475,867 500,009,076 498,918,665 487,977,226 486,886,815 Transfer to land and development expenditure – Freehold land – Leasehold land At 31 December – Freehold land – Leasehold land Certain land titles of the Group and of the Company with carrying amount of RM19,305,914 (2005: RM18,514,391) are registered under the name of the holding corporation. Land titles of the Group and of the Company with carrying amount of RM351,655,144 (2005: RM365,719,175) and RM350,226,969 (2005: RM364,291,000) are in the process of being transferred to the name of the Company. Land title of the Group and of the Company with carrying amount of RM20,026,457 (2005: RM21,010,770) are in the process of being issued. Security Development lands of the Company with carrying amount of RM22,595,412 (2005: RM69,980,554) are charged to the bank as security for borrowings as disclosed in Note 15. Freehold land of a subsidiary consisting of 731 pieces of land with carrying value of RM2,825,961 are charged to the bank for bridging loan facilities granted to that subsidiary as disclosed in Note 15. 8. DEFERRED TAX ASSETS Recognised deferred tax assets and liabilities Deferred tax assets and liabilities attributable to the following: Group 2006 RM Property, plant and equipment Convertible unsecured loan stocks Company 2005 RM 2006 RM 2005 RM (74,000) 15,860,251 (82,000) 15,588,251 (73,000) 15,860,251 (81,000) 15,588,251 15,786,251 15,506,251 15,787,251 15,507,251 Johor Land Berhad 2006 annual report laporan tahunan 75 notes to the financial statements 8. DEFERRED TAX ASSETS (continued) Recognised deferred tax assets and liabilities (continued) Movement in temporary differences during the year. Group 9. At 1 January 2005 RM Effect of adoption of FRS 132 RM At 1 January 2005 Restated RM Recognised in income statement RM At 31 December 2005 RM Recognised in income statement RM At 31 December 2006 RM Property, plant and equipment (21,000) — Convertible unsecured loan stocks (7,501,199) 22,516,804 (21,000) (61,000) (82,000) 8,000 (74,000) 15,015,605 572,646 15,588,251 272,000 15,860,251 (7,522,199) 22,516,804 14,994,605 511,646 15,506,251 280,000 15,786,251 Company Property, plant and equipment — — Convertible unsecured loan stocks (7,501,199) 22,516,804 — (81,000) (81,000) 8,000 15,015,605 572,646 15,588,251 272,000 15,860,251 (7,501,199) 22,516,804 15,015,605 491,646 15,507,251 280,000 15,787,251 (73,000) PROPERTY DEVELOPMENT PROJECTS Property development projects comprise the following: Group Land – Freehold land – Long leasehold land Development cost Add: Costs incurred during the year – Development costs Transfer from land held for property development Company 2006 RM 2005 RM 2006 RM 2005 RM 2,401,040 8,586,316 111,741,677 1,176,335 12,649,966 97,886,514 — 8,586,316 62,465,197 — 12,649,966 64,656,437 122,729,033 111,712,815 71,051,513 77,306,403 60,189,936 — 61,142,369 1,819,223 38,011,638 — 45,095,967 594,518 182,918,969 174,674,407 109,063,151 122,996,888 Less: Costs recognised as an expense in income statement – Previous year – Current year (40,376,550) (21,633,793) (37,206,042) (34,309,347) (12,936,406) (16,171,947) (16,254,163) (27,821,083) Sub-total Transfer to inventories 120,908,626 103,159,018 (18,847,971) (20,806,535) 79,954,798 (16,441,728) 78,921,642 (20,806,535) 63,513,070 58,115,107 102,060,655 82,352,483 The title to the long leasehold land is held in escrow by the holding corporation. In addition, 75 pieces of freehold land in a subsidiary with carrying value of RM1,441,429 are charged to the bank for bridging loan facilities granted to that subsidiary as disclosed in Note 15. Included in the development cost of the Group is interest expenses capitalised during the financial year of RM269,000 (2005: NIL). 76 Johor Land Berhad laporan tahunan 2006 annual report notes to the financial statements 10. INVENTORIES Group At cost Completed houses Other inventories Raw materials and consumables Work-in-progress Finished goods Company 2006 RM 2005 RM 2006 RM 2005 RM 48,224,834 6,852 — — — 47,103,605 14,978 115,340 60,362 2,821 44,933,776 6,852 — — — 45,737,417 14,978 — — — 48,231,686 47,297,106 44,940,628 45,752,395 Certain titles of the completed houses of the Group and of the Company with carrying value amounting to RM40,493,020 (2005: RM42,891,009) are held in escrow by the holding corporation. 11. TRADE AND OTHER RECEIVABLES Group Trade receivables Progress billings receivable Other receivables, deposits and prepayments Due from holding corporation Due from subsidiaries Due from related companies Due from associates Company 2006 RM 2005 RM 2006 RM 2005 RM 30,981,218 1,551,335 4,943,486 563,992 — 229,773 68,211 38,347,600 — 1,018,692 872,930 — 443,092 — 26,012,901 — 4,715,732 563,992 14,687,372 229,773 — 31,645,714 — 788,750 872,930 17,081,353 443,092 — 38,338,015 40,682,314 46,209,770 50,831,839 Included in deposits of the Group is an amount of RM85,608 (2005: RM85,608) paid to a related company to acquire a piece of land held for property development for a total consideration of RM865,079 (2005: RM865,079). The balance of the consideration will be payable upon delivery of the land title to the subsidiary and after obtaining approval from the relevant authorities. 12. SHORT TERM INVESTMENTS Group/Company 2006 2005 RM RM Quoted shares in Malaysia At cost Market value 176,462 114,618 210,475 110,850 Johor Land Berhad 2006 annual report laporan tahunan 77 notes to the financial statements 13. CASH AND CASH EQUIVALENTS Group Fixed deposits placed with licensed banks Cash and bank balances Company 2006 RM 2005 RM 2006 RM 2005 RM 1,720,589 3,611,550 12,630,060 8,249,276 — 2,540,653 — 1,171,498 5,332,139 20,879,336 2,540,653 1,171,498 Included in cash and bank balances of the Group and of the Company is an amount of RM2,913,405 (2005: RM7,741,132) and RM2,453,573 (2005: RM1,095,500), of which the utilisation is subject to the Housing Developers (Housing Development Account) Regulations 2002. 14. CAPITAL AND RESERVES Group/Company 2006 2005 RM RM Share capital Ordinary shares of RM1.00 each: Authorised Issued and fully paid 500,000,000 500,000,000 122,000,000 122,000,000 Group 2006 RM Reserves Non-distributable Share premium reserve Convertible unsecured loan stocks-equity portion (Note 15) Treasury shares Distributable Retained earnings 78 Johor Land Berhad laporan tahunan 2006 annual report Company 2005 RM 2006 RM 2005 RM 78,581,839 78,581,839 78,581,839 78,581,839 291,388,446 291,388,446 291,388,446 291,388,446 (854,774) (760,158) (854,774) (760,158) 369,115,511 369,210,127 369,115,511 369,210,127 148,846,545 140,693,324 116,250,987 108,713,053 517,962,056 509,903,451 485,366,498 477,923,180 notes to the financial statements 14. CAPITAL AND RESERVES (Continued) Share premium Share premium arose in 1996 from the following: Group/Company RM Special issue of 42,952,000 ordinary shares of RM1.00 each at RM2.20 per share for acquisition of land and landed properties 51,542,400 Restricted public issue of 10,000,000 new ordinary shares of RM1.00 each at RM2.20 per share to the entitled shareholders of Kulim (Malaysia) Berhad 12,000,000 Public issue of 15,000,000 new ordinary shares of RM1.00 each at RM2.20 per share Less: Listing expenses 18,000,000 (2,960,561) 78,581,839 Treasury shares At the Extraordinary General Meeting held on 24 May 2006, the Company’s shareholders renewed the scheme to repurchase its own shares. The Directors of the Company are committed to enhance the value of the Company to its shareholders and believe that the repurchase scheme can be applied in the best interest of the Company and its shareholders. During the financial year, the Company repurchase in the open market a total of 118,800 (2005: NIL) of its issued ordinary shares. The average repurchase price was RM0.79 (2005: NIL) per ordinary share. The number of outstanding shares in issue after deducting treasury shares held at the financial year end is 121,048,200 (2005: 121,167,000) ordinary shares of RM1.00 each. Treasury shares have no rights to voting, dividends and participation in any other distribution. Treasury shares shall not be taken into account in calculating the number of percentage of shares or of a class of shares in the Company for any purposes including substantial shareholding, take-overs, notices, the requisitioning of meetings, the quorum for a meeting and the result of a vote on a resolution at a meeting. None of the treasury shares has been resold or distributed as share dividends during the financial year. Section 108 tax credit and tax exempt account Subject to agreement by the Inland Revenue Board, the Company has sufficient Section 108 tax credit and tax exempt account to frank the payment of dividends out of its entire distributable reserves at 31 December 2006. 15. LOANS AND BORROWINGS This note provides information about the contractual terms of the Group’s and the Company’s interest-bearing loans and borrowings. For more information about the Group’s and the Company’s exposure to interest rate risk, see Note 24. Group Non-current Secured Finance lease liabilities Bridging loan Unsecured Convertible Unsecured Loan Stocks (“CULS”) Company 2006 RM 2005 RM 2006 RM 2005 RM — 8,680,000 69,202 — — — 59,987 — 8,680,000 69,202 — 59,987 52,462,084 53,417,080 52,462,084 53,417,080 61,142,084 53,486,282 52,462,084 53,477,067 Johor Land Berhad 2006 annual report laporan tahunan 79 notes to the financial statements 15. LOANS AND BORROWINGS (continued) Group Current Secured Bank overdraft Finance lease liabilities Unsecured Bank overdrafts Revolving credit Company 2006 RM 2005 RM 2006 RM 2005 RM 11,457,117 59,737 — 275,000 11,457,117 59,737 — 259,200 11,516,854 275,000 11,516,854 259,200 19,995,386 9,061,444 37,415,483 9,045,030 19,995,386 5,061,444 37,415,483 5,045,030 29,056,830 46,460,513 25,056,830 42,460,513 40,573,684 46,735,513 36,573,684 42,719,713 101,715,768 100,221,795 89,035,768 96,196,780 Security The bridging loan of a subsidiary is secured over 806 pieces of freehold land of that subsidiary with carrying amount of RM4,267,390. Certain bank overdrafts facilities of the Company are secured by way of fixed charge on a freehold land of the Company and a corporate guarantee by the holding corporation. Terms and debt repayment schedule Group 2006 Revolving credits Bank overdrafts Finance lease liabilities CULS Bridging loan 2005 Revolving credits Bank overdrafts Finance lease liabilities CULS 80 Johor Land Berhad laporan tahunan 2006 annual report Year of maturity 2007 2009 2010 2007 2009 Carrying amount RM’000 Under 1 year RM’000 1 – 2 years RM’000 2 – 5 years RM’000 9,061 31,453 60 52,462 8,680 9,061 31,453 60 — — — — — — — — — — 52,462 8,680 101,716 40,574 — 61,142 9,045 37,415 344 53,417 9,045 37,415 275 — — — 69 — — — — 53,417 100,221 46,735 69 53,417 notes to the financial statements 15. LOANS AND BORROWINGS (continued) Terms and debt repayment schedule Company 2006 Revolving credits Bank overdrafts Finance lease liabilities CULS 2005 Revolving credits Bank overdrafts Finance lease liabilities CULS Year of maturity 2007 2009 2007 2009 Carrying amount RM’000 Under 1 year RM’000 1 – 2 years RM’000 2 – 5 years RM’000 5,061 31,453 60 52,462 5,061 31,453 60 — — — — — — — — 52,462 89,036 36,574 — 52,462 5,045 37,415 319 53,417 5,045 37,415 259 — — — 60 — — — — 53,417 96,196 42,719 60 53,417 Convertible unsecured loan stocks Group/Company 2006 2005 RM RM At 1 January/31 December 330,000,000 330,000,000 The movement of the liability component of the CULS during the year is as follows: Group/Company 2006 2005 RM RM At 1 January Interest accrued Interest charged 53,417,080 3,068,292 (4,023,288) 53,627,159 3,080,880 (3,290,959) At 31 December 52,462,084 53,417,080 On 15 December 2004, the Company issued 330,000,000 five (5) years Convertible Unsecured Loan Stocks (“CULS”) at nominal value RM1.00 each as part of purchase consideration for the acquisition of freehold agricultural land zoned for development located at Mukim of Tebrau, Johor Bahru from its holding corporation. Johor Land Berhad 2006 annual report laporan tahunan 81 notes to the financial statements 15. LOANS AND BORROWINGS (continued) Convertible unsecured loan stocks (continued) The salient features of the CULS are as follows: (a) The total issuance is RM330 million. (b) The interest rate of CULS is as follows (less any Malaysian income or with holding tax applicable thereto which is required to be deducted): Period (from issue date) Interest rate per annum First 24 months (Year 1 and 2) Next 36 months (Year 3, 4 and 5) 1% 6% The interest rate is payable annually in arrears on the last day of every 12 months period commencing from the issue date, 15 December 2004 until the maturity date, 15 December 2009 (‘Interest Payment Date’), calculated on the basis of a year of 365 days and on the actual number of days elapsed and accrues daily from and including the issue date or the previous Interest Payment Date. (c) The CULS are redeemable in full or in part at their nominal value, at the option of the Company which will be determined by the independent Directors of the Company. The redemption will be dependent on inter-alia, the availability of profits and cash flows of the Company. (d) The conversion of the CULS into new ordinary shares of RM1.00 each of the Company at a conversion price of RM1.00 per share is at the option of the CULS holder and may take place at any time after the second anniversary from the date of issue of the CULS until the maturity date. (e) The remaining CULS not redeemed or converted on maturity date will be automatically converted into ordinary shares. (f) The CULS will not be listed on the Bursa Malaysia Securities Berhad or any other stock exchange. The CULS have been classified separately into their components parts as liability or as equity on the balance sheet in accordance with FRS 1322004, Financial Instruments: Disclosure and Presentation. The fair value of the liability component calculated using a prevailing market interest rate at the date of issuance for a similar non-convertible loan stock. The residual amount, representing the fair value of the equity component, including deferred tax asset, is included in shareholders’ equity. 16. TRADE AND OTHER PAYABLES Group Trade payables Other payables and accrued expenses Due to holding corporation Due to a subsidiaries Due to related companies 82 Johor Land Berhad laporan tahunan 2006 annual report Company 2006 RM 2005 RM 2006 RM 2005 RM 9,147,642 5,837,852 185,596 — 209,377 8,066,005 13,409,145 683,882 — 110,874 9,143,814 5,634,970 175,896 8,501,100 209,377 8,628,622 12,294,065 166,802 16,500 110,874 15,380,467 22,269,906 23,665,157 21,216,863 notes to the financial statements 17. REVENUE Group Property development Sales of land Sales of goods Management fee Rental income Dividend income Company 2006 RM 2005 RM 2006 RM 2005 RM 55,390,063 14,830,531 3,049,805 180,849 1,209,005 — 69,404,689 14,916,630 3,412,479 277,186 772,173 — 44,053,698 14,830,531 2,824,033 737,477 1,209,005 15,034,965 56,041,347 14,916,630 2,613,136 531,222 772,173 13,637,168 74,660,253 88,783,157 78,689,709 88,511,676 18. FINANCE COSTS Group CULS Bank overdrafts Other borrowings Company 2006 RM 2005 RM 2006 RM 2005 RM 3,068,292 2,498,995 501,203 3,080,880 1,996,394 538,823 3,068,292 2,498,995 291,497 3,080,880 1,996,394 373,695 6,068,490 5,616,097 5,858,784 5,450,969 19. OPERATING PROFIT Group Operating profit is arrived at after charging/(crediting) Audit fees Allowance for doubtful debts Bad debts written off Change in fair value on investments properties Depreciation Directors’ – Fees – Contributions to Employee Provident Fund – Other remuneration Property, plant and equipment written off Personnel expenses (excluding Directors’ remuneration): – Contributions to Employee Provident Fund – Wages, salaries and others Rental expenses (Gain)/Loss on disposal: – Property, plant and equipment – Quoted shares in Malaysia – Associate Impairment losses: – Property, plant and equipment – Subsidiary Gross dividends from quoted shares in Malaysia Rental income Company 2006 RM 2005 RM 2006 RM 2005 RM 89,000 27,538 30,961 276,920 565,037 89,000 — — — 805,610 70,000 — — — 463,295 70,000 — — — 499,493 217,000 38,297 431,645 8,844 189,400 41,472 450,232 4,869 217,000 38,297 431,645 1,109 189,400 41,472 450,232 3,823 638,223 5,397,867 558,732 603,432 4,601,253 517,685 633,480 5,357,514 558,732 585,050 4,410,544 517,685 14,159 (3,018) — — (12,612) 1,623,786 — (3,018) — — (12,612) — — — (2,371) (1,401,005) (1,065,754) — (5,641) (913,173) — — (2,371) (1,209,005) — 1,500,000 (5,641) (772,173) The estimated monetary value of Directors’ benefits-in-kind of the Group and of the Company are RM51,044 (2005: RM52,430). Johor Land Berhad 2006 annual report laporan tahunan 83 notes to the financial statements 20. TAX EXPENSE Group Tax expense – Current year – (Over)/Underprovision in prior years Deferred tax income – Reversal of temporary differences Company 2006 RM 2005 RM 5,024,951 (321,432) 6,259,075 57,743 7,960,000 (326,388) 8,304,618 48,602 4,703,519 6,316,818 7,633,612 8,353,220 (280,000) (511,646) 2006 RM (280,000) 2005 RM (491,646) 4,423,519 2,335,537 5,805,172 3,042,170 7,353,612 — 7,861,574 — 6,759,056 8,847,342 7,353,612 7,861,574 RM’000 Group RM’000 RM’000 Company RM’000 Reconciliation of effective tax expense Profit for the year Total tax expense 17,675 6,759 16,455 8,847 17,132 7,354 14,722 7,862 Profit excluding tax 24,434 25,302 24,486 22,584 Share of tax of equity accounted associates Tax calculated using Malaysian tax rate of 28% (2005: 28%) Non deductible expenses Effect of change in tax rate* Difference in effective tax rate of equity accounted associates Effect of unrecognised deferred tax Others 6,842 338 532 (830) 225 (27) 7,085 1,704 — — — — 6,856 292 532 — — — 6,324 1,489 — — — — (Over)/Under provision in prior years 7,080 (321) 8,789 58 7,680 (326) 7,813 49 Tax expense 6,759 8,847 7,354 7,862 * In the Malaysian Budget 2007, it was announced that the corporate income tax rate will be reduced to 27% in 2007 and to 26% in 2008. Consequently deferred tax assets and liabilities are measured using these tax rates. 84 Johor Land Berhad laporan tahunan 2006 annual report notes to the financial statements 21. EARNINGS PER SHARE Basic earnings per share The calculation of basic earnings per share at 31 December 2006 was based on the profit attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding calculated as follows: Group Profit attributable to ordinary shareholders 2006 RM 2005 RM 17,747,702 16,567,113 Numbers Numbers Weighted average number of ordinary shares Number of shares in issue at beginning of year Effect of treasury shares held 122,000,000 122,000,000 (908,634) (833,000) Weighted average number of ordinary shares in issue 121,091,366 121,167,000 14.66 13.67 Basis earnings per share (sen) Diluted earnings per share The calculation of diluted earnings per share at 31 December 2006 was based on profit attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares, calculated as follows: Group 2006 2005 RM RM Profit attributable to ordinary shareholders Add: Assuming savings in interest expense on CULS, net of tax 17,747,702 2,209,170 16,567,113 2,218,234 Adjusted net profit for calculating diluted earnings per ordinary share 19,956,872 18,785,347 Numbers Numbers Weighted average number of ordinary shares Assuming full conversion of CULS as at the date of issue (which are convertible only on or after 16 December 2006) 121,091,366 121,167,000 330,000,000 330,000,000 Weighted average number of ordinary shares (diluted) at 31 December 451,091,366 451,167,000 4.42 4.16 Diluted earnings per share (sen) Johor Land Berhad 2006 annual report laporan tahunan 85 notes to the financial statements 22. DIVIDENDS Dividends recognised in the current year by the Company are: Sen per share 2006 2005 – Interim 2005 – Final 2006 – Interim 4 3 4 Total amount 2005 2004 – Final Total amount RM 3,489,610 2,618,685 3,486,186 Date of payment 21 April 2006 30 June 2006 21 December 2006 9,594,481 4 3,489,610 17 June 2005 23. CAPITAL AND OTHER COMMITMENTS Group Lease rental commitment Contracted but not provided for – One year or later and no later than 5 years 2006 RM 2005 RM — 509,568 On 28 December 2006, the Company entered into a development agreement with its holding corporation, Johor Corporation, to acquire the development rights to develop on 3 parcels of lands of 40.29 acres with an existing sports complex erected thereon for a consideration of RM33 million. The Company had paid RM3.3 million upon execution of the development agreement. 24. FINANCIAL INSTRUMENTS Financial risk management objectives and policies Exposure to credit, interest rate, liquidity and cash flow risks arise in the normal course of the Group’s and of the Company’s business. The Group and the Company have formulated a financial risk management framework whose principal objective is to minimise the Group’s and the Company’s exposure to risks and/or costs associated with the financing, investing and operating activities of the Group and of the Company. Credit risks At balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. Liquidity risk The Group and the Company monitors and maintains a level of cash and cash equivalents deemed adequate by management to finance the operations and to mitigate the effects of fluctuation in cash flow. Cash flow risk The Group and the Company review their cash flow position regularly to manage their exposure to fluctuations in future cash flows associated with their monetary financial instruments. 86 Johor Land Berhad laporan tahunan 2006 annual report notes to the financial statements 24. FINANCIAL INSTRUMENTS (continued) Interest rate risk The Group’s and the Company’s investment in fixed-rate debt securities and its fixed rate borrowings are exposed to a risk of change in their fair value due to changes in interest rates. The Group’s and Company’s investments in variable-rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates. Investments in equity securities and short term receivables and payables are not exposed to interest rate risk. There is no formal hedging policy with respect to interest rate exposure. Exposure to interest rate risk is monitored on an ongoing basis and the Group and the Company endeavour to keep the exposure at an acceptable level. Interest expense on the CULS is calculated on the effective yield basis by applying the effective interest rate 5.745% (2005: 5.745%) for an equivalent non-convertible loan stock to liability component of the CULS. Effective interest rate and repricing analysis In respect of interest-earning financial assets and interest-bearing financial liabilities, the following table indicates their average effective interest rates at the balance sheet date and the periods in which they mature, or if earlier, reprice. Group 2006 Fixed rate instruments CULS – liability Bridging loan Deposits with a licensed bank Floating rate instruments Bank overdrafts Revolving credits 2005 Fixed rate instruments CULS – liability Deposits with a licensed bank Floating rate instruments Bank overdrafts Revolving credits Average effective interest rate % Total RM’000 5.7 7.3 2.6 7.8 4.0-5.9 5.7 3.8 6.7 4.0-4.6 Less than 1 year RM’000 1 – 2 years RM’000 2 – 3 years RM’000 4 – 5 years RM’000 (52,462) (8,680) 1,721 — — 1,721 — — — (52,462) — — — (8,680) — (59,421) 1,721 — (52,462) (8,680) (31,452) (9,061) (31,452) (9,061) — — — — — — (40,513) (40,513) — — — (53,417) 12,630 — 12,630 — — (53,417) — — — (40,787) 12,630 — (53,417) — (37,415) (9,045) (37,415) (9,045) — — — — — — (46,460) (46,460) — — — Johor Land Berhad 2006 annual report laporan tahunan 87 notes to the financial statements 24. FINANCIAL INSTRUMENTS (continued) Effective interest rate and repricing analysis (continued) Company Average effective interest rate % Total RM’000 5.7 (52,462) 7.8 5.7-5.9 (31,453) (5,061) (31,453) (5,061) (36,514) (36,514) 2006 Fixed rate instruments CULS – liability Floating rate instruments Bank overdrafts Revolving credits Less than 1 year RM’000 1 – 2 years RM’000 — — 2 – 3 years RM’000 4 – 5 years RM’000 (52,462) — — — — — 2005 Fixed rate instruments CULS – liability 5.7 (53,417) — — (53,417) — Floating rate instruments Bank overdrafts Revolving credits 6.9 4.6 (37,415) (5,045) (37,415) (5,045) — — — — — — (42,460) (42,460) — — — Fair values Recognised financial instruments The carrying amounts of current financial assets and liabilities approximate their fair values due to the relatively short term nature of these financial instruments. The Company provides financial guarantees to bank for credit facility extended to a subsidiary. The fair value of such financial guarantee is not expected to be material as the probability of the subsidiary defaulting on the credit line is remote. The fair value of other financial assets and liabilities, together with the carrying amounts shown in the balance sheets, are as follows: 2006 Carrying amount RM’000 Short term investment in quoted shares Bridging loan CULS – liability 176 (8,680) (52,462) 2005 Fair value RM’000 210 (8,680) (52,462) Carrying amount RM’000 Fair value RM’000 115 — (53,417) 111 — (53,417) Estimation of fair values The following summarises the methods used in determining the fair values of financial instruments reflected in the table. Fair value of quoted shares is based on quoted market prices at the balance sheet date without any deduction for transaction costs. The carrying amount of the bridging loan approximates its fair values as the effective interest rate is comparable to the movements in the market interest rate and there is no material change in the interest charged on similar kind of borrowings in the market. The carrying amount of convertible unsecured loan stocks approximates its fair value as the instrument is calculated using a prevailing market rate at the date of issuance for a similar convertible loan stocks. 88 Johor Land Berhad laporan tahunan 2006 annual report notes to the financial statements 25. RELATED PARTIES Controlling related party relationships are as follows: (i) Subsidiaries as disclosed in Note 5. Significant related party transactions of the Group and of the Company other than those disclosed elsewhere in the financial statements are as follows: Group Company 2006 2005 2006 2005 RM’000 RM’000 RM’000 RM’000 OTHER RELATED PARTY TRANSACTIONS Holding corporation Interest expense on CULS Services acquired Services rendered 4,023 110 30 3,291 93 67 4,023 100 30 3,291 80 67 — — — — — — 638 22 89 306 — 180 2,824 349 2,613 332 2,824 349 2,613 332 24 12 24 12 517 10 492 2 517 10 492 2 15 16 15 15 1,027 683 1,027 683 Pro Communication Sdn. Bhd. Services acquired 39 171 39 171 Johor Silica Industries Sdn. Bhd. Services rendered 24 24 24 24 Pro Office Solution Sdn. Bhd. Annual report expenses 51 — 51 — Subsidiaries Services rendered Sales commission income Purchase of building materials RELATED COMPANIES – Kulim (Malaysia) Berhad Sales of finished goods Services acquired Johor Land (H) Sdn. Bhd. Services rendered Damansara Asset Sdn. Bhd. (formerly known as Harta Consult Sdn. Bhd.) Rental expenses Services acquired Willis (Malaysia) Sdn. Bhd. Agency fees expenses Teraju Fokus Sdn. Bhd. Security service acquired Johor Land Berhad 2006 annual report laporan tahunan 89 notes to the financial statements 25. RELATED PARTIES (continued) (i) Subsidiaries as disclosed in Note 5. Significant related party transactions of the Group and of the Company other than those disclosed elsewhere in the financial statements are as follows (continued): Group Company 2006 2005 2006 2005 RM’000 RM’000 RM’000 RM’000 RELATED COMPANIES (continued) Pro Corporate Management Services Sdn. Bhd. Registrar fees expenses Associate – Malaya Bangla Metal Fabricators Joint Venture Company Limited Sale of materials Dato’ Hj. Hassan bin Hj. Mohd. Yunos, a Director Professional fees paid to a firm in which he is a partner 98 — 98 — 112 — — — 13 — 13 — These transactions have been entered into in the normal course of business and have been established under negotiated terms. 26. SEGMENT REPORTING There is no segment information presented as the Group is primarily engaged in housing development activities and operates principally in Malaysia. 27. EFFECT OF ADOPTION OF NEW FINANCIAL REPORTING STANDARDS The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31 December 2006. The effect of the adoption of FRS 3 Business Combinations, FRS 136 Impairment of Assets, FRS 138 Intangible Assets, FRS 140 Investment Property, FRS 127 Consolidated and Separate Financial Statements and FRS 132 Financial Instruments: Disclosures and Presentation are summarised as follows:- FRS 3 Business Combinations, FRS 136 Impairment of Assets, FRS 138 Intangible Assets The adoption of FRS 3, FRS 136 and FRS 138 has resulted in a change in the accounting policy for goodwill. The change in accounting policy is made in accordance with their transitional provisions. Goodwill is stated at cost less accumulated impairment losses and is no longer amortised. Instead, goodwill impairment is tested annually, or when circumstances change, indicating that goodwill might be impaired. This has resulted in the cessation of amortisation of goodwill with effect from 1 January 2006. Had there not been a change in accounting policy, the net profit attributable to shareholders for the financial year ended 31 December 2006 would reduce by RM1,019,100. This change in accounting policy has no material impact on earnings per share. FRS 140, Investment Properties The Group now measures all investment properties at fair value with any change therein recognised in the income statement. In accordance with the transitional provisions, FRS 140 has been applied retrospectively and the comparatives have been restated. The adoption of this accounting policy is made in accordance with their transitional provisions. The change in accounting policy has no material impact on the earnings per share. 90 Johor Land Berhad laporan tahunan 2006 annual report notes to the financial statements 27. EFFECT OF ADOPTION OF NEW FINANCIAL REPORTING STANDARDS (continued) FRS 127, Consolidated and Separate Financial Statements The adoption of FRS 127 has resulted in a change in the accounting policy for investment in subsidiaries. Investment in subsidiaries is stated at cost instead of at valuation. This has resulted in the reversal of revaluation surplus arising from revaluation of investment in subsidiaries retrospectively and the comparative have been restated. This change in accounting policy has no material impact on the earnings per share. Balance sheet at 31 December Investment in subsidiaries Cumulative decrease in retained earnings 2006 RM’000 2005 RM’000 Restated 19,548 5,000 19,548 5,000 This change in accounting policy has no impact on earnings per share. FRS 132, Financial Instruments: Disclosure and Presentation In the International Accounting Standards Board (“IASB”) meeting in June 2006, the IASB stressed that IAS 32 required an assessment of the substance of the contractual agreement. It does not, however, require or permit factors not within the contractual arrangement to be taken into consideration in classifying a financial instrument. The IASB further confirmed that a contractual obligation could be established explicitly or indirectly, but it must be established through the terms and conditions of the instrument. In view of the clarifications provided by IASB, the Company reassessed the liability component of the CULS which resulted in a restatement of financial statements. The restatement had the following impact on these consolidated financial statements: Income statement for the year ended 31 December 2006 RM’000 Decrease in interest expense Increase in tax expense Increase in profit attributable to shareholders 15,163 (4,246) 10,917 2005 RM’000 8,902* (4,014) 4,887 * Total interest expense for the year was RM14.338 million, out of which RM5.436 million was capitalised to property development projects. Balance sheet at 31 December Cumulative decrease in CULS liability Cumulative increase in CULS equity Cumulative increase in deferred tax assets Cumulative decrease in deferred tax liabilities Cumulative increase in property development projects 2006 RM’000 2005 RM’000 (264,876) 272,100 (263,921) 272,100 15,441 (2,996) (5,436) 15,507 (2,996) (5,436) 2006 RM 2005 RM 9.02 0.00 4.03 0.07 Earnings per share Increase in basic earning per share Decrease in diluted earning per share Johor Land Berhad 2006 annual report laporan tahunan 91 notes to the financial statements 28. COMPARATIVE FIGURES Certain comparative figures have been reclassified as a result of adoption of new Financial Reporting Standards as stated in note 27 and to conform with the presentation requirements of FRS 101. Group Balance sheets Investments in subsidiaries Property development projects CULS – liability CULS – equity Revaluation reserve Retained earnings Deferred tax assets Deferred tax liabilities Income statements Finance costs Tax expense Profit before tax Profit after tax Statement of changes in equity Retained earnings at 1 January 2005 Retained earnings at 31 December 2005 Revaluation reserve at 1 January 2005 Revaluation reserve at 31 December 2005 Earnings per share – Basic – Diluted Company As restated RM As previously stated RM As restated RM As previously stated RM — 82,352,483 53,417,080 291,388,446 — 140,693,324 15,506,251 — — 87,788,664 317,338,460 19,288,797 — 135,805,760 — 2,995,763 19,548,000 58,115,107 53,417,080 291,388,446 — 108,713,053 15,507,251 — 27,078,027 63,551,288 317,338,460 19,288,797 2,530,027 108,825,489 — 2,994,763 5,616,097 5,805,172 22,260,712 16,455,540 14,518,451 4,832,554 16,400,528 11,567,974 5,450,969 7,861,574 22,584,447 14,722,873 14,353,323 3,846,784 13,682,093 9,835,309 — 140,693,324 — — — 135,805,760 — — 97,479,790 108,713,053 — — 102,479,790 108,825,489 2,530,027 2,530,027 13.67 4.16 9.64 4.23 — — — — Following the adoption of FRS 3, Business Combinations, minority interest was reclassified into equity, likewise in arriving at profit for the year minority interest was not deducted. Properties amounting to RM2,534,538 in 2005 that are owned or held under a leasehold interest to earn rental income or for capital appreciation or for both were reclassified from property, plant and equipment to investment properties. 92 Johor Land Berhad laporan tahunan 2006 annual report location of land bank and projects LAND BANK PROJECT SEGAMAT Endau Tangkak MERSING Yong Peng MUAR Jemaluang KLUANG PAGOH LAND 55.65 acres Air Hitam Simpang Renggam BATU PAHAT Sedili Kulai BANDAR DATO’ ONN 1,434.76 acres Benut BANDAR TIRAM 1,141.69 acres KOTA TINGGI TAMAN KOMERSIL SENAI PEKAN RABU MEDAN KOTA GREEN PLAINS TAMAN BUKIT TIRAM PONTIAN Ulu Tiram TAMAN CENDANA JOHOR BAHRU PASIR GUDANG TAMAN SEROJA Desaru VACANT FACTORY LAND 1.89 acres TAMAN MAWAR TAMAN BUKIT DAHLIA 206.86 acres INDERAPUTRA LAND 0.84 acres TEBRAU BUSINESS PARK Johor Land Berhad 2006 annual report laporan tahunan 93 list of properties Revaluation of land and buildings will be carried out only if there intended for sales or when market value have change materially. Details of the landed properties owned by the JLand Group as at 31 December 2006 are as follows:- Title/Location Tenure/Approx. age of building Existing use Land area/ Built-up area Net book value as at 31.12.2006 RM’000 Acquisition Date 2,535 1999 A. FIXED ASSETS PPSB Factory Building PTD 148262 HS(D) 303855 Mukim of Plentong District of Johor Bahru (Owned by PPSB) PTD 110891 HS(D) 212054 Mukim of Plentong District of Johor Bahru (Owned by PPSB) Bungalow lot at Green Plains PTD 57050 HS(D) 187333 Mukim of Tebrau District of Johor Bahru PTD 57049 HS(D) 187332 Mukim of Tebrau District of Johor Bahru (Owned by ADSB) Bungalow lot at Taman Bertam Lot 4429 – 4431 HS(D)1664 – 1666 Mukim 6, Seberang Prai Utara Penang Lot 4453 – 4454 HS(D) 5824 – 5825 Mukim 6, Seberang Prai Utara Penang Shophouse at Taman Bintang PTD 22925 HS(D) 13369 Mukim of Senai-Kulai District of Johor Bahru 60 years lease Expiring on 18.5.2060/8 years Factory building 12,140.47 sq metres 1,268.50 sq metres 60 years lease Expiring on 27.6.2053/12 years Factory building 2,559.00 sq metres 1,004.00 sq metres 650 2006 Freehold/12 years Double storey bungalow 4,411.07 sq metres 400.00 sq metres 904 1998 Freehold/12 years Double storey bungalow 4,822.60 sq metres 357.24 sq metres 665 2003 Freehold 3 vacant bungalow lots 2,222.00 sq metres 294 1995 Freehold 2 vacant bungalow lots 1,482.00 sq metres 202 2004 Freehold/10 years Double storey shophouse 143.00 sq metres 272.00 sq metres 206 1995 Freehold Oil palm estate 106.97 acres 13,973 2001 Freehold Oil palm estate 76.64 acres 6,128 1995 B. FUTURE DEVELOPMENT Bandar Tiram (Phase 1) Lot 169 G 15799 Mukim of Tebrau Lot 825 – 831 EMR 412 – 418 Mukim of Plentong District of Johor Bahru Bandar Tiram (Phase 2) PTD 113308 – 113435 HS(D) 375296 – 375423 Mukim of Tebrau District of Johor Bahru 94 Johor Land Berhad laporan tahunan 2006 annual report list of properties Existing use Land area/ Built-up area Net book value as at 31.12.2006 RM’000 Freehold Oil palm estate 572.49 acres 45,778 1995 PTD 105769 HS(D) 354249 & PTD 105770 HS(D) 354250 Mukim of Tebrau District of Johor Bahru (Owned by ADSB) Freehold Oil palm estate 71.05 acres 3,150 1995 PTD 14616 – 14618 HS(D) 62950 – 62952 Mukim of Tebrau District of Johor Bahru (Owned by ADSB) Freehold Oil palm estate 99.58 acres 4,615 1995 Freehold Oil palm estate 97.31 acres 7,782 1995 Freehold Oil palm estate 117.65 acres 9,408 1995 Freehold Mixed housing development 27.43 acres 2,434 1995 Title/Location Tenure/Approx. age of building Acquisition Date B. FUTURE DEVELOPMENT (cont’d.) Bandar Tiram (Phase 3) PTD 105766 HS(D) 354246 & PTD 105767 HS(D) 354247 Mukim of Tebrau District of Johor Bahru Bandar Tiram (Phase 4) PTD 105768 HS(D) 354248 Mukim of Tebrau District of Johor Bahru Bandar Tiram (Phase 5) Lot 12 CT 556, Lot 14 CT 557 Lot 18 CT 561 Lot 860 CT 562 Lot 2016 CT 567 Part of Lot 1176 CT 565 & Part of Lot 1182 CT 566 Mukim of Kota Tinggi District of Kota Tinggi Taman Bukit Tiram (Phase 2) PTD 84650 – 84680 HS(D) 307056 – 307086, PTD 84697 – 84741 HS(D) 307103 – 307147, PTD 84744 – 84821 HS(D) 307148 – 307225, PTD 84824 – 84933 HS(D) 307226 – 307335, PTD 84935 – 85077 HS(D) 307336 – 307478, PTD 85080 – 85139 HS(D) 307479 – 307538, PTD 85141 HS(D) 307539 PTD 85274 – 85442 HS(D) 307672 – 307840, PTD 85444 – 85453 HS(D) 307841 – 307850 & PTD 85455 – 85533 HS(D) 307851 – 307929, Mukim of Tebrau District of Johor Bahru (Owned by ADSB) Johor Land Berhad 2006 annual report laporan tahunan 95 list of properties Title/Location Tenure/Approx. age of building Existing use Land area/ Built-up area Net book value as at 31.12.2006 RM’000 Acquisition Date B. FUTURE DEVELOPMENT (cont’d.) Taman Bukit Tiram (Phase 3) PTD 88267 – 88273 HS(D) 302582 – 302588 Mukim of Tebrau District of Johor Bahru (Owned by ADSB) Freehold 7 vacant bungalow lots 3.37 acres 405 1995 PTD 130271 – 130297 HS(D) 401455 – 401481 Mukim of Tebrau District of Johor Bahru (Owned by ADSB) Freehold Mixed housing development 4.30 acres 443 1995 PTD 138183 – 138387 HS(D) 427149 – 427350 PTD 138421 – 238443 HS(D) 427379 – 427401 Mukim of Tebrau District of Johor Bahru (Owned by ADSB) Freehold Mixed housing development 5.04 acres 520 1995 Development land Mukim of Tebrau District of Johor Bahru (Owned by ADSB) Freehold (Land title is yet to be issued) Commercial development 4.51 acres 465 1995 99 years lease Expiring on 2.6.2100 Mixed housing development 19.50 acres 4,451 1995 Taman Bukit Dahlia (Block A) PTD 155670 – 155715 HS(D) 317563 – 317609, PTD 156278 – 156289 HS(D) 318171 – 318182 PTD 156312 – 156335 HS(D) 318205 – 318228 PTD 156358 – 156381 HS(D) 318251 – 318273 PTD 156404 – 156415 HS(D) 318296 – 318307 PTD 156290 – 156311 HS(D) 318183 – 318204, PTD 156336 – 156357 HS(D) 318229 – 318250, PTD 156382 – 156403 HS(D) 318274 – 318295, PTD 156446 – 156473 HS(D) 318337 – 318364, PTD 156532 – 156559 HS(D) 318935 – 318962, PTD 156417 – 156445 HS(D) 318308 – 318336, PTD 156474 – 156500 HS(D) 318365 – 318391, PTD 156501 – 156531 HS(D) 318904 – 318934 PTD 156560 – 156588 96 Johor Land Berhad laporan tahunan 2006 annual report list of properties Title/Location Tenure/Approx. age of building Existing use Land area/ Built-up area Net book value as at 31.12.2006 RM’000 Acquisition Date B. FUTURE DEVELOPMENT (cont’d.) Taman Bukit Dahlia (Block A) (cont’d.) HS(D) 318963 – 318991 PTD 190546 – 190639 HS(D) 436699 – 436792 PTD 190641 – 190652 HS(D) 436793 – 436804 PTD 190654 – 190703 HS(D) 436805 – 436854 Mukim of Plentong District of Johor Bahru Taman Bukit Dahlia (Block C) Development land Mukim of Plentong District of Johor Bahru 99 years lease (Land titles is yet to be issued) Mixed housing development 55.89 acres 5,800 1995 Taman Bukit Dahlia (Block D) Development land Mukim of Plentong District of Johor Bahru 99 years lease (Land titles is yet to be issued) Mixed housing development 60.72 acres 7,096 1995 99 years lease Expiring on 30.6.2103 Mixed housing development 21.92 acres 4,977 1995 99 years lease Expiring on 2.7.2100 Mixed housing development 3.95 acres 915 1995 PTD 179207 – 179208 HS(D) 391369 – 391370 & PTD 179223 – 179240 HS(D) 391385 – 391402 Mukim of Plentong District of Johor Bahru Freehold Mixed housing development 1.52 acres 352 1995 Development land Mukim of Plentong District of Johor Bahru 99 years lease (Land title is yet to be issued) Mixed housing development 43.36 acres 4,219 1995 Taman Bukit Dahlia (Block E) PTD 179241 – 179336 HS(D) 371069 – 371164 PTD 179337 – 179348 HS(D) 371165 – 371176, PTD 179350 – 179451 HS(D) 371177 – 371278, PTD 179758 – 179877 HS(D) 371585 – 371704 & PTD 179878 – 180230 HS(D) 371705 – 372057 Mukim of Plentong District of Johor Bahru Taman Bukit Dahlia (Block F) PTD 155634 – 155669 HS(D) 317527 – 317562 Mukim of Plentong District of Johor Bahru Johor Land Berhad 2006 annual report laporan tahunan 97 list of properties Title/Location Tenure/Approx. age of building Existing use Land area/ Built-up area Net book value as at 31.12.2006 RM’000 Acquisition Date 17,199 2004 348,377 2004 B. FUTURE DEVELOPMENT (cont’d.) Bandar Dato’ Onn PTD 138799 – 139442 HS(D) 424475 – 425098 Mukim of Tebrau District of Johor Bahru Development land Mukim of Tebrau District of Johor Bahru Inderaputra Land PTB 21108 HS(D) 380523 Mukim of Bandar Johor Bahru District of Johor Bahru Pagoh Land Development Land Mukim of Jorak District of Muar Vacant Factory Land at Pasir Gudang PTD 110889 – 110890 HS(D) 212052 – 212053 & PTD 110895 HS(D) 212058 Mukim of Plentong District of Johor Bahru 98 Johor Land Berhad laporan tahunan 2006 annual report Freehold Mixed housing development 69.85 acres Freehold (Land titles is yet to be issued) Mixed housing development/ Oil palm estate 1,404.40 acres Freehold Vacant land 3,409.22 sq metres 7,049 2000 Leasehold (Land title is yet to be issued) Mixed housing development 55.65 acres 3,896 1998 60 years lease Expiring on 27.6.2053 3 vacant factory lots 7,661.521 sq metres 577 1995 shareholdings statistics as at 26 March 2007 Authorised Share Capital Issued & Fully Paid-Up Capital Class of Shares : RM500,000,000 : RM122,000,000 less 951,800 Treasury Shares = 121,048,200 : Ordinary Share of RM1/= each VOTING RIGHT OF SHAREHOLDERS Every member of the Company present in person or by proxy shall have one vote on a show of hand and in the case of a poll shall have one vote for every share of which he/she is the holder. BREAK DOWN OF SHAREHOLDINGS Size of Shareholdings No. of Shareholders % No. of Shares % Less than 100 100 – 1,000 1,001 – 10,000 10,001 – 100,000 100,001 to less than 5% of Issued Capital 5% and above of Issued Capital 696 4,960 3,274 556 56 2 7.29 51.97 34.30 5.83 0.59 0.02 23,616 2,755,421 11,529,845 15,984,070 43,392,475 47,362,773 0.02 2.28 9.52 13.20 35.85 39.13 TOTAL 9,544 100.00 121,048,200 100.00 No. of Shares % 28,606,390 18,756,383 5,571,000 5,017,670 4,318,937 23.63 15.50 4.60 4.15 3.57 3,500,000 2,892,270 2.89 2.39 2,667,100 1,794,580 1,756,488 2.20 1.48 1.45 1,500,000 1.24 1,414,000 1,003,260 969,000 1.17 0.83 0.80 770,000 630,000 0.64 0.52 578,510 537,690 0.48 0.44 494,400 402,950 0.41 0.33 TOP THIRTY SECURITIES ACCOUNT HOLDERS (Without aggregating the securities from different securities accounts belonging to the same depositor) Name 1. 2. 3. 4. 5. 6. Johor Corporation Johor Corporation Johor Capital Holdings Sdn Bhd Johor Ventures Sdn Bhd Kumpulan Waqaf An-Nur Berhad HSBC Noms (A) Sdn Bhd 7. 8. Johor Corporation OSK Noms (T) Sdn Bhd 9. 10. 11. Permodalan Nasional Berhad Employees Provident Fund Board Amanah Raya Noms (T) Sdn Bhd 12. ECM Libra Avenue Noms (A) Sdn Bhd 13. 14. 15. Lembaga Tabung Amanah Warisan Negeri Terengganu Shoptra Jaya (M) Sdn Bhd Citigroup Noms (A) Sdn Bhd 16. 17. Quah Wee Lai PRB Noms (T) Sdn Bhd 18. 19. Zalaraz Sdn Bhd PRB Noms (T) Sdn Bhd 20. Tabung Amanah Warisan Negeri Johor – A/C Exempt An for Morgan Stanley & Co. Incorporated – A/C Lee Cheng Hock – A/C Skim Amanah Saham Bumiputera – A/C DBS Vickers Secs (S) Pte Ltd for Optimus Capital International Limited – A/C UBS AG for NPJ Global Opportunities Master Fund (Pledged) – A/C Rubber Industry Smallholders Development Authority – A/C Rubber Industry Smallholders Development Authority Johor Land Berhad 2006 annual report laporan tahunan 99 shareholdings statistics as at 26 March 2007 TOP THIRTY SECURITIES ACCOUNT HOLDERS (continued) (Without aggregating the securities from different securities accounts belonging to the same depositor) Name 21. No. of Shares % 394,000 0.33 380,000 360,400 350,980 0.31 0.30 0.29 350,160 0.29 325,600 315,400 0.27 0.26 270,000 262,400 0.22 0.22 247,940 0.20 No. of Shares % 50,608,053 41.81 10,807,630 8.93 PRB Noms (T) Sdn Bhd – A/C Rubber Industry Smallholders Development Authority 22. OSK Noms (T) Sdn Bhd 23. 24. 25. Lee Siew Hoon Johor Corporation PRB Noms (T) Sdn Bhd 26. OSK Noms (T) Sdn Bhd 27. 28. Lim Kian Huat OSK Noms (T) Sdn Bhd 29. 30. Lim Poh Teen Citigroup Noms (A) Sdn Bhd – A/C DMG & Partners Securities Pte Ltd for Tan Hian-Tsin (31-12122) – A/C Rubber Industry Smallholders Development Authority – A/C Seah Kiat Leong @ Sia Kiat Leong – A/C DMG & Partners Securities Pte Ltd for Crocodile Int’l Sdn Bhd (3D-75749) – A/C CBNY for DFA Emerging Markets Fund SUBSTANTIAL SHAREHOLDERS Name 1. Johor Corporation – 5 a/cs Johor Corporation Group – Johor Capital Holdings Sdn Bhd – 3 a/cs – Johor Ventures Sdn Bhd – 2 a/cs 5,763,810 5,043,820 ANALYSIS OF SHAREHOLDERS No. of Shareholders % No. of Shares % Malaysian – Bumiputra – Others Foreigners 1,017 7,279 1,248 10.65 76.27 13.08 80,781,937 26,355,604 13,910,659 66.74 21.77 11.49 TOTAL 9,544 100.00 121,048,200 100.00 100 Johor Land Berhad laporan tahunan 2006 annual report notice of annual general meeting NOTICE IS HEREBY GIVEN THAT the Thirty Second (32nd) Annual General Meeting of Johor Land Berhad will be held at Tanjung Puteri 305, Persada Johor International Convention Centre, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor on Monday, 21 May 2007 at 12.00 noon for the following purposes:- AS ORDINARY BUSINESSES:1. 2. 3. To receive and adopt the Report and the Audited Financial Statements for the financial year ended 31 December 2006 and the reports of the Directors and Auditors thereon; Resolution 1 To approve final dividend of 3% gross (less Malaysian income tax at 27%) in respect of the financial year ended 31 December 2006; Resolution 2 To re-elect the following Directors who retire in accordance with the Company’s Articles of Association:(i) (ii) (iii) (iv) 4. 5. 6. 7. Lukman Bin Hj Abu Bakar Abdul Malek Bin Talib Yusof Bin Rahmat Mohd Talhar Bin Abdul Rahman (Article (Article (Article (Article 81) 81) 81) 87) Resolution Resolution Resolution Resolution 3 4 5 6 To re-elect Dato Hj Hassan Bin Hj Mohd Yunos, who is over the age of seventy (70) years who retires in accordance with Section 129(6) of the Companies Act, 1965; Resolution 7 To approve the payment of Directors’ fees in respect of the financial year ended 31 December 2006; Resolution 8 To re-appoint Messrs KPMG as Auditors of the Company and to authorise the Directors to fix their remuneration; Resolution 9 To transact any other business of which due notice shall have been given; AS SPECIAL BUSINESS:8. To consider, and if thought fit, to pass the following Resolution as Ordinary Resolution:“That pursuant to Section 132(D) of the Companies Act, 1965, the Directors be and are hereby authorised to allot and issue shares of the Company at any time until the conclusion of the next Annual General Meeting, upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion shall deem fit provided always that the aggregate number of shares to be allotted and issued shall not exceed ten percent (10%) of the issued share capital of the Company for the time being, subject always to the approval of all relevant regulatory bodies being obtained for such allotment and issue.” (See note) Resolution 10 Johor Land Berhad 2006 annual report laporan tahunan 101 notice of annual general meeting NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT NO. 13 Subject to approval of Resolution 2, a final dividend of 3% gross (less Malaysian income tax at 27%) in respect of the financial year ended 31 December 2006 on the entitled issued ordinary share capital of the Company payable on 29 June 2007 to shareholders registered in the Register of Members of the Company with the Registrars, Pro-Corporate Management Services Sdn Bhd, Suite 2, 17th Floor, Kompleks Tun Abdul Razak, Jalan Wong Ah Fook, 80000 Johor Bahru, Johor at the close of business at 5.00 pm on 25 May 2007. Further NOTICE IS ALSO HEREBY GIVEN THAT a depositor shall qualify for entitlement only in respect of:a. Shares transferred into the depositor’s securities accounts before 4.00 pm on 25 May 2007 in respect of ordinary transfers; b. Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of the Bursa Malaysia Securities Berhad. By Order of the Board JOHOR LAND BERHAD JAMALLUDIN BIN KALAM (LS 02710) IDHAM JIHADI BIN ABU BAKAR ACIS (MAICSA 7007381) Secretaries Venue : JOHOR BAHRU Dated : 25 APRIL 2007 EXPLANATORY NOTE ON SPECIAL BUSINESS:Resolution 10 Your Board would like to act expeditiously to expand your Group’s core business, if and when they arise. Although the investment sum involved may not be too substantial to require shareholders’ approval at an Extraordinary General Meeting, the Directors may consider it appropriate to finance such potential business opportunities by the issue of a limited number of new shares. In order to facilitate the process, it is thus appropriate that the Directors be authorised to issue shares in the Company up to an amount not exceeding in total 10% of the existing issued capital of the Company for such purpose during the period. This authority, unless revoked or varied at a general meeting, will take effect until the next Annual General Meeting of the Company pursuant to Section 132(D) of the Companies Act, 1965. 102 Johor Land Berhad laporan tahunan 2006 annual report Notes:1. A member entitled to attend and vote at this meeting is entitled to appoint a proxy and vote instead of him. A proxy may but need not be a member of the Company. 2. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing or if the appointer is a corporation/company either under its common seal or under the hand of its attorney duly authorised. 3. If a member appoints two proxies to attend at the same meeting, the instrument of proxy must specify the proportion of his shareholdings to be represented by each proxy. 4. The instrument appointing a proxy must be deposited at the Registered Office of the Company, at 13th Floor, Menara Johor Corporation, KOTARAYA 80000 Johor Bahru, Johor not less than forty eight (48) hours before the time appointed for holding the meeting or any adjournment thereof. notis mesyuarat agung tahunan DENGAN INI DIBERITAHU BAHAWA Mesyuarat Agung Tahunan Johor Land Berhad kali ke Tiga Puluh Dua (32) akan diadakan di Tanjung Puteri 305, Persada Johor Pusat Konvensyen Antarabangsa, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor pada hari Isnin, 21 Mei 2007 pada jam 12.00 tengahari bagi tujuantujuan berikut:- SEBAGAI URUSAN-URUSAN BIASA:1. 2. 3. Menerima dan meluluskan Laporan dan Penyata Kewangan Beraudit bagi tahun kewangan berakhir 31 Disember 2006 serta Laporan Pengarah-Pengarah dan Juruaudit berkaitan dengannya; Resolusi 1 Meluluskan dividen akhir sebanyak 3% kasar (ditolak 27% cukai pendapatan Malaysia) bagi tahun kewangan berakhir 31 Disember 2006; Resolusi 2 Melantik semula Pengarah-Pengarah berikut yang bersara mengikut Tataurusan Syarikat:(i) (ii) (iii) (iv) 4. 5. 6. 7. Lukman Bin Hj Abu Bakar Abdul Malek Bin Talib Yusof Bin Rahmat Mohd Talhar Bin Abdul Rahman (Artikel (Artikel (Artikel (Artikel 81) 81) 81) 87) Resolusi Resolusi Resolusi Resolusi 3 4 5 6 Melantik semula Dato Hj Hassan Bin Hj Mohd Yunos yang berumur melebihi tujuh puluh tahun (70) yang bersara mengikut Seksyen 129(6) Akta Syarikat, 1965; Resolusi 7 Meluluskan pembayaran yuran Pengarah bagi tahun kewangan berakhir 31 Disember 2006; Resolusi 8 Melantik semula Tetuan KPMG sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-pengarah untuk menetapkan bayaran mereka; Resolusi 9 Menjalankan sebarang urusan Syarikat yang lain di mana notis yang sewajarnya telah diberi; SEBAGAI URUSAN KHAS:8. Untuk mempertimbangkan dan sekiranya didapati wajar, meluluskan Resolusi Biasa berikut:“Bahawa selaras dengan peruntukan Seksyen 132(D) Akta Syarikat 1965, adalah dan dengan ini para Pengarah diberi kuasa untuk memperuntukkan dan menerbitkan sahamsaham Syarikat pada bila-bila masa sehingga penutup Mesyuarat Agung Tahunan yang akan datang, mengikut terma-terma dan syarat-syarat tertentu dan untuk tujuan-tujuan tertentu sebagaimana para Pengarah mungkin, mengikut budibicara mutlak mereka, fikirkan wajar dengan syarat bahawa agregat bilangan saham yang akan diperuntukkan dan diterbitkan tidak melebihi sepuluh peratus (10%) daripada modal saham Syarikat yang diterbitkan buat ketika ini, tertakluk sentiasa kepada kelulusan pihak-pihak berkuasa yang berkaitan diperolehi bagi peruntukkan dan terbitan saham demikian” (Lihat nota) Resolusi 10 Johor Land Berhad 2006 annual report laporan tahunan 103 notis mesyuarat agung tahunan NOTIS KELAYAKAN DAN PEMBAYARAN DIVIDEN NO. 13 Tertakluk kepada kelulusan Resolusi 2, dividen akhir sebanyak 3% kasar (ditolak 27% cukai pendapatan Malaysia) bagi tahun berakhir 31 Disember 2006 ke atas saham-saham biasa Syarikat yang berkelayakan akan dibayar pada 29 Jun 2007 kepada pemegang-pemegang saham berdaftar di Daftar Pemegang Saham Syarikat dengan Pendaftar Saham Syarikat, Pro-Corporate Management Services Sdn Bhd, Suite 2, Tingkat 17, Kompleks Tun Abdul Razak, Jalan Wong Ah Fook, 80000 Johor Bahru, Johor pada penutupan urusniaga pada jam 5.00 petang pada 25 Mei 2007. DENGAN INI SELANJUTNYA DIBERITAHU BAHAWA pendeposit adalah berkelayakan untuk hak dividen hanya dalam keadaan-keadaan berikut: a. Saham-saham yang dipindah milik kepada akaun sekuriti pendeposit sebelum jam 4.00 petang pada 25 Mei 2007 berkaitan dengan pindah milik-pindah milik biasa; b. Saham-saham yang dibeli di Bursa Malaysia Securities Berhad yang berkelayakan berdasarkan kepada peraturan yang ditetapkan oleh Bursa Malaysia Securities Berhad. Nota:- Dengan Perintah Lembaga Pengarah JOHOR LAND BERHAD JAMALLUDIN BIN KALAM (LS 02710) IDHAM JIHADI BIN ABU BAKAR ACIS (MAICSA 7007381) Setiausaha-Setiausaha Tempat : JOHOR BAHRU Tarikh : 25 APRIL 2007 NOTA KETERANGAN BAGI URUSAN KHAS:Resolusi 10 Lembaga Pengarah perlu bertindak merebut peluang-peluang memperbesarkan perniagaan utama Kumpulan dengan segera, apabila dan jika peluang-peluang itu muncul. Biarpun jumlah pelaburannya mungkin tidak terlalu besar sehingga perlu mendapatkan kelulusan para pemegang saham menerusi Mesyuarat Agung Luarbiasa, para Pengarah mungkin perlu untuk membiayai peluang perniagaan yang berpotensi itu dengan menerbitkan sebilangan sahamsaham baru. Bagi memenuhi proses ini, adalah wajar para Pengarah diberikan kuasa menerbitkan saham-saham dalam Syarikat dengan jumlahnya tidak melebihi sepuluh peratus (10%) daripada terbitan modal saham Syarikat sedia ada untuk tujuan itu dalam tempoh berkenaan. Kuasa ini kecuali dibatalkan atau diubahsuai dalam mesyuarat agung, akan berkuatkuasa sehingga tamat Mesyuarat Agung Tahunan Syarikat berikutnya menurut Seksyen 132(D) Akta Syarikat, 1965. 104 Johor Land Berhad laporan tahunan 2006 annual report 1. Seorang ahli yang berhak menghadiri dan mengundi dalam Mesyuarat ini berhak melantik seorang proksi untuk menghadiri bagi pihak dirinya. Seorang proksi tidak semestinya seorang ahli syarikat. 2. Suratcara perlantikan proksi hendaklah dibuat secara bertulis oleh pelantik atau wakil mutlak yang berkuasa atau jika pelantik adalah sebuah perbadanan/syarikat suratcara mestilah disempurnakan di bawah meterai perbadanan/syarikat atau di dalam bidang kuasa wakil mutlak. 3. Apabila seorang Ahli melantik dua orang proksi dalam mesyuarat yang sama, perlantikan tersebut hendaklah menyatakan bilangan saham yang akan diwakili oleh proksi masing-masing. 4. Suratcara perlantikan proksi hendaklah sampai di Pejabat Berdaftar Syarikat, di Tingkat 13, Menara Johor Corporation, KOTARAYA 80000 Johor Bahru, Johor tidak lewat dari empat puluh lapan (48) jam sebelum mesyuarat ditetapkan atau sebarang mesyuarat penangguhannya. statement accompanying the notice of annual general meeting 1. Directors who are standing for re-election at the Thirty Second (32nd) Annual General Meeting of the Company scheduled to be held at Tanjung Puteri 305, Persada Johor International Convention Centre, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor on Monday, 21 May 2007 at 12.00 noon are as follows:(i) (ii) (iii) (iv) (v) Lukman Bin Hj Abu Bakar Abdul Malek Bin Talib Yusof Bin Rahmat Mohd Talhar Bin Abdul Rahman Dato Hj Hassan Bin Hj Mohd Yunos (Article 81) (Article 81) (Article 81) (Article 87) (Section 129(6) of the Company Act, 1965) Resolution Resolution Resolution Resolution Resolution 3 4 5 6 7 The profiles of the Directors standing for re-election are on pages 10, 13, 15, 16 and 17. 2. The Thirty First (31st) Annual General Meeting of the Company was held at Delima Room, The Puteri Pacific Hotel, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor on Wednesday, 24 May 2006 at 12.00 noon. 3. Details of the Board of Directors’ Meetings. Four (4) Board of Directors’ Meetings were held during the financial year ended 31 December 2006. Details of the Board of Directors’ Meetings are as follows:Date Venue 27 February 2006 2.30 pm Meeting Room, 14th Floor, Menara Johor Corporation, KOTARAYA 80000 Johor Bahru 24 May 2006 9.00 am Nilam Room, Level 2, The Puteri Pacific Hotel, 80000 Johor Bahru 28 August 2006 9.00 am Meeting Room, 14th Floor, Menara Johor Corporation, KOTARAYA 80000 Johor Bahru 27 November 2006 4. Time 10.00 am Conference Room, Nusa Mutiara Complex, 81100 Johor Bahru Details of attendance of Directors at Board Meetings are as follows:- Name Date of Appointment 27/2/06 24/5/06 28/8/06 27/11/06 Tan Sri Dato’ Muhammad Ali Hashim 1 January 2006 / / / / Mohd Talhar Bin Abdul Rahman 15 April 1996 / OS OS / A.F.M Shafiqul Hafiz 1 May 1988 / / / / Ahamad Bin Mohamad (resigned with effect from 1 August 2006) 1 January 1996 / / — — Kua Hwee Sim 1 May 1996 / / / / Dato Hj Hassan Bin Hj Mohd Yunos 1 August 2005 / / OS / Mahlil Bin Omar 3 July 2001 / / / / Md Tamyes Bin A. Rahim (resigned with effect from 2 May 2006) 15 March 1995 / — — — Azizah Binti Abdul Rahman (resigned with effect from 15 August 2006) 10 January 2005 / / — — Lukman Bin Hj Abu Bakar 1 August 2006 — — / / Abdul Malek Bin Talib 1 January 2007 — — — — Yusof Bin Rahmat 1 January 2007 — — — — OS – Overseas Johor Land Berhad 2006 annual report laporan tahunan 105 penyata bersama notis mesyuarat agung tahunan 1. Para Pengarah yang menawarkan diri untuk dipilih semula pada Mesyuarat Agung Tahunan Syarikat yang ke Tiga Puluh Dua (32) yang dijadualkan akan diadakan di Tanjung Puteri 305, Persada Johor Pusat Konvensyen Antarabangsa, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor pada hari Isnin, 21 Mei 2007 pada jam 12.00 tengahari adalah seperti berikut:(i) (ii) (iii) (iv) (v) Lukman Bin Hj Abu Bakar Abdul Malek Bin Talib Yusof Bin Rahmat Mohd Talhar Bin Abdul Rahman Dato Hj Hassan Bin Hj Mohd Yunos (Artikel 81) (Artikel 81) (Artikel 81) (Artikel 87) (Seksyen 129(6) Akta Syarikat, 1965) Resolusi Resolusi Resolusi Resolusi Resolusi 3 4 5 6 7 Profil para Pengarah yang menawarkan diri untuk dipilih semula adalah seperti di muka surat 10, 13, 15, 16 dan 17. 2. Mesyuarat Agung Tahunan Syarikat yang ke Tiga Puluh Satu (31) telah diadakan di Bilik Delima, Hotel Puteri Pacific, Jalan Abdullah Ibrahim, 80000 Johor Bahru, Johor pada hari Rabu, 24 Mei 2006 pada jam 12.00 tengahari. 3. Butiran Mesyuarat Ahli Lembaga Pengarah. Empat (4) Mesyuarat Ahli Lembaga Pengarah telah diadakan pada tahun kewangan berakhir 31 Disember 2006. Butiran Mesyuarat Ahli Lembaga Pengarah adalah seperti berikut:Tarikh Tempat 27 Februari 2006 2.30 petang Bilik Mesyuarat, Tingkat 14, Menara Johor Corporation, KOTARAYA 80000 Johor Bahru 24 Mei 2006 9.00 pagi Bilik Nilam, Tingkat 2, Hotel Puteri Pacific, 80000 Johor Bahru 28 Ogos 2006 9.00 pagi Bilik Mesyuarat, Tingkat 14, Menara Johor Corporation, KOTARAYA 80000 Johor Bahru 27 November 2006 4. Masa 10.00 pagi Bilik Persidangan, Kompleks Nusa Mutiara, 81100 Johor Bahru Butiran mengenai kehadiran para Pengarah di Mesyuarat Ahli Lembaga Pengarah adalah seperti berikut:- Nama 27/2/06 24/5/06 28/8/06 27/11/06 Tan Sri Dato’ Muhammad Ali Hashim 1 Januari 2006 / / / / Mohd Talhar Bin Abdul Rahman 15 April 1996 / LN LN / A.F.M Shafiqul Hafiz 1 Mei 1988 / / / / Ahamad Bin Mohamad (meletak jawatan berkuatkuasa mulai 1 Ogos 2006) 1 Januari 1996 / / — — Kua Hwee Sim 1 Mei 1996 / / / / Dato Hj Hassan Bin Hj Mohd Yunos 1 Ogos 2005 / / LN / Mahlil Bin Omar 3 Julai 2001 / / / / Md Tamyes Bin A. Rahim (meletak jawatan berkuatkuasa mulai 2 Mei 2006) 15 Mac 1995 / — — — Azizah Binti Abdul Rahman (meletak jawatan berkuatkuasa mulai 15 Ogos 2006) 10 Januari 2005 / / — — Lukman Bin Hj Abu Bakar 1 Ogos 2006 — — / / Abdul Malek Bin Talib 1 Januari 2007 — — — — Yusof Bin Rahmat 1 Januari 2007 — — — — LN – Luar Negara 106 Tarikh Perlantikan Johor Land Berhad laporan tahunan 2006 annual report corporate directory JOHOR LAND BERHAD Tebrau Divison/Sales Office (Company No: 12379-K) Kompleks Nusa Mutiara Jalan Bukit Mutiara 81100 Johor Bahru Johor Darul Ta’zim Malaysia Tel : 07-358 2692 Fax : 07-353 2692 Main Office 10th Floor, KOMTAR Jalan Wong Ah Fook 80000 Johor Bahru Johor Darul Ta’zim Malaysia Tel : 07-227 2692 Fax : 07-226 2962 Johor Bahru Division 10th Floor, KOMTAR Jalan Wong Ah Fook 80000 Johor Bahru Johor Darul Ta’zim Malaysia Tel : 07-227 2692 Fax : 07-226 2962 Pasir Gudang Division No. 58-58A Jalan Mawar 46 Taman Mawar 81700 Pasir Gudang Johor Darul Ta’zim Malaysia Tel : 07-251 5692 Fax : 07-256 4611 Tiram Division/Sales Office Taman Bukit Tiram 81800 Ulu Tiram Johor Darul Ta’zim Malaysia Tel : 07-358 3692 Fax : 07-353 2692 ADVANCE DEVELOPMENT SDN. BHD. (Company No: 13974-A) 10th Floor, KOMTAR Jalan Wong Ah Fook 80000 Johor Bahru Johor Darul Ta’zim Malaysia Tel : 07-227 2692 Fax : 07-226 2962 JOHOR LAND MANUFACTURING SDN. BHD. (Company No: 301430-D) 10th Floor, KOMTAR Jalan Wong Ah Fook 80000 Johor Bahru Johor Darul Ta’zim Malaysia Tel : 07-227 2692 Fax : 07-226 2962 PEMBINAAN PREFAB SDN. BHD. (Company No: 30936-A) 10th Floor, KOMTAR Jalan Wong Ah Fook 80000 Johor Bahru Johor Darul Ta’zim Malaysia Tel : 07-227 2692 Fax : 07-226 2962 REVERTEX (MALAYSIA) SDN. BHD. (Company No: 13437-V) 11⁄2 Miles, Jalan Batu Pahat 86000 Kluang Johor Darul Ta’zim Malaysia Tel : 07-773 1000 Fax : 07-772 4669 Pasir Gudang Sales Office Mini Dahlia, Persiaran Dahlia 1 Taman Bukit Dahlia 81700 Pasir Gudang Johor Darul Ta’zim Malaysia Tel : 07-252 2692 Fax : 07-252 8108 Johor Land Berhad 2006 annual report laporan tahunan 107 This page has been intentionally left blank. Muka surat ini sengaja dibiarkan kosong. proxy form *I/We (BLOCK LETTERS) of being *a member/members of JOHOR LAND BERHAD hereby *appoints/appoint the *Chairman of the Meeting or as *my/our Proxy to vote for *me/us on *my/our behalf at the Thirty Second (32nd) Annual General Meeting of the Company to be held on Monday, 21 May 2007 at 12.00 noon or at any adjournment of such meeting. Should you desire to direct your Proxy how to vote on the Resolutions set out in the Notice of Meeting and as summarised below, please indicate with an “X” in the appropriate space. If no direction as to voting is given, the Proxy will vote or abstain at his/her discretion. RESOLUTION DESCRIPTION FOR 1 To receive the report and the Audited Financial Statements 2 To approve final dividend 3 To re-elect Lukman Bin Hj Abu Bakar as Director (Article 81) 4 To re-elect Abdul Malek Bin Talib as Director (Article 81) 5 To re-elect Yusof Bin Rahmat as Director (Article 81) 6 To re-elect Mohd Talhar Bin Abdul Rahman as Director (Article 87) 7 To re-elect Dato Hj Hassan Bin Hj Mohd Yunos as Director (Section 129(6) of the Companies Act, 1965) 8 To approve Directors’ fees 9 To re-appoint Auditors 10 To approve issuance of shares AGAINST Number of Shares Signed this day of 2007. Signature of Member(s) Notes:1. A member entitled to attend and vote at this meeting is entitled to appoint a proxy and vote instead of him. A proxy may but need not be a member of the Company. 2. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing or if the appointer is a Corporation/Company either under its common seal or under the hand of its attorney duly authorised. 3. If a member appoints two proxies to attend at the same meeting, the instrument of proxy must specify the proportion of his shareholdings to be represented by each proxy. 4. The instrument appointing a proxy must be deposited at the Registered Office of the Company, at 13th Floor, Menara Johor Corporation, KOTARAYA 80000 Johor Bahru, Johor not less than forty eight (48) hours before the time appointed for holding the meeting or any adjournment thereof. (*) Please strike out whichever inapplicable. FOLD HERE FOLD HERE STAMP THE COMPANY SECRETARY JOHOR LAND BERHAD (12379-K) 13th Floor, Menara Johor Corporation KOTARAYA, 80000 Johor Bahru, Johor MALAYSIA borang proksi *Saya/Kami (HURUF BESAR) beralamat sebagai *ahli/ahli-ahli JOHOR LAND BERHAD dengan ini melantik *Pengerusi Mesyuarat atau sebagai Proksi *saya/kami untuk mengundi bagi pihak *saya/kami dalam Mesyuarat Agung Tahunan Syarikat kali Ke Tiga Puluh Dua (32) yang akan diadakan pada hari Isnin, 21 Mei 2007, jam 12.00 tengahari atau di sebarang penangguhannya. Jika anda ingin mengarahkan Proksi anda mengundi ke atas resolusi-resolusi yang dinyatakan di dalam Notis Mesyuarat dan seperti ringkasan di bawah, tandakan dengan “X” dalam ruang yang disediakan. Jika tiada arahan tertentu diberi, Proksi anda akan mengundi atau berkecuali mengikut budi bicaranya sendiri. RESOLUSI KETERANGAN MENYOKONG 1 Menerima laporan dan Penyata Kewangan Beraudit 2 Meluluskan dividen akhir 3 Melantik semula Lukman Bin Hj Abu Bakar sebagai Pengarah (Artikel 81) 4 Melantik semula Abdul Malek Bin Talib sebagai Pengarah (Artikel 81) 5 Melantik semula Yusof Bin Rahmat sebagai Pengarah (Artikel 81) 6 Melantik semula Mohd Talhar Bin Abdul Rahman sebagai Pengarah (Artikel 87) 7 Melantik semula Dato Hj Hassan Bin Hj Mohd Yunos sebagai Pengarah (Seksyen 129(6) Akta Syarikat 1965) 8 Meluluskan bayaran Yuran Pengarah 9 Melantik semula Juruaudit 10 Meluluskan penerbitan saham-saham MENENTANG Bilangan Saham Ditandatangani pada haribulan 2007. Tandatangan Ahli/Ahli-ahli Nota:1. Seorang ahli yang berhak menghadiri dan mengundi dalam Mesyuarat ini berhak melantik seorang proksi untuk menghadiri bagi pihak dirinya. Seorang proksi tidak semestinya seorang ahli Syarikat. 2. Suratcara perlantikan proksi hendaklah dibuat secara bertulis oleh pelantik atau wakil mutlak yang berkuasa atau jika pelantik adalah sebuah perbadanan/syarikat, suratcara mestilah disempurnakan di bawah meterai perbadanan/syarikat atau di dalam bidang kuasa wakil mutlak. 3. Apabila seorang Ahli melantik dua orang proksi dalam mesyuarat yang sama, perlantikan tersebut hendaklah menyatakan bilangan saham yang akan diwakili oleh proksi masing-masing. 4. Suratcara perlantikan proksi hendaklah sampai di Pejabat Berdaftar Syarikat, di Tingkat 13, Menara Johor Corporation, KOTARAYA 80000 Johor Bahru, Johor tidak lewat dari empat puluh lapan (48) jam sebelum mesyuarat ditetapkan atau sebarang mesyuarat penangguhannya. (*) Sila potong mana-mana yang tidak berkenaan. LIPAT DI SINI LIPAT DI SINI SETEM SETIAUSAHA SYARIKAT JOHOR LAND BERHAD (12379-K) Tingkat 13, Menara Johor Corporation KOTARAYA, 80000 Johor Bahru, Johor MALAYSIA JOHOR LAND BERHAD JohorLand Laporan Tahunan 2006 Annual Report BERHAD 12379-K (12379-K) Laporan Tahunan 2006 10th Floor, KOMTAR, Jalan Wong Ah Fook, 80000 Johor Bahru, Johor, Malaysia. Tel: 07-227 2692 Fax: 07-226 2962 Annual Report www.jland.com.my Building Communities Enriching Lives